SCHEME INFORMATION DOCUMENT

Transcription

1 SCHEME INFORMATION DOCUMENT TAURUS SHORT TERM INCOME FUND (An Open-ended Bond Scheme) This product is suitable for Investors who are seeking* Medium term capital appreciation and current income with low volatility Investment in Debt/ Money Market Instruments Low Low Moderately Riskometer Moderate Moderately High High Investors understand that their principal will be at moderately low risk *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. OFFER OF UNITS OF RS.1000/- PER UNIT AT NAV BASED PRICES LOW HIGH Name of Mutual Fund Name of Asset Management Company Name of Trustee Company Addresses, Website of the entities : Taurus Mutual Fund : Taurus Asset Management Company Limited (CIN: U67190MH1993PLC073154) : Taurus Investment Trust Company Limited (CIN: U65990MH1993PLC072984) : 305, Regent Chambers, 208, Jamnalal Bajaj Marg, Nariman Point, Mumbai Website: Toll Free No The particulars of the Schemes have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centers / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Taurus Mutual Fund, Tax and Legal issues and general information on SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated 30/06/2017

2 Highlights/ Summary of The Scheme I. Introduction TABLE OF CONTENTS Particulars Pg. No A. Risk Factors Standard Risk Factors 8 Scheme Specific Risk Factors B. Requirement of Minimum Number of Investors in the Scheme 12 C. Special Consideration 12 D. Definition 13 E. Due Diligence by the Asset Management Company 16 II. Information About The Schemes 17 A. Type of the Scheme 17 B. What is the Investment objective of the scheme? 17 C. How will the Scheme Allocate its assets? 18 D. Where will the scheme invest? 18 E. What are the investment strategies? 18 F. Fundamental Attributes Type of Scheme Investment Objective 28 Terms of Issue G. How Will The Scheme Benchmark its Performance? 28 H. Who Manages The Scheme? 29 I. What Are The Investment Restriction? 30 J. How Has The Scheme Performed? 32 III. Units And Offers 34 A. New Fund Offer (NFO) 34 B. Ongoing Offer Details 34 C. Periodic Disclosures 59 D. Computation of NAV 61 IV. Fees And Expenses 61 A. New Fund Offer (NFO) Expenses 61 B. Annual Scheme Recurring Expenses 61 C. Load Structure 63 D. Waiver of Load for Direct Applications 64 V. Rights of Unitholders VI. Penalties and Pending Litigation or Proceedings, Findings of Inspections or Investigations for which action may have been taken or is in Process of being taken by Regulatory Authority 66 2

3 HIGHLIGHTS/ SUMMARY OF THE SCHEME 1. Names of Scheme & Investment Objective : To generate income and capital appreciation with low volatility by investing in a diversified portfolio of short term debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realised. 2. Liquidity : The Scheme is an open-ended and offer units for sale and redemption at NAV based prices on all business days. As per SEBI Regulations, the Fund shall despatch redemption proceeds within 10 working days of receiving a valid redemption request. However, the Fund will endeavour to issue redemption cheques at the earliest. 3. Benchmark : Crisil Short Term Bond Fund Index 4. Plans / Options : The Scheme will offer two plans : Regular Plan* and Direct Plan Regular Plan: This Plan is for investors who wish to route their investment through any distributor. Direct Plan shall be available for such investment applications which are not routed through a distributor. All the features of the Direct Plan under Scheme like the investment objective, asset allocation pattern, investment strategy, risk factors, facilities offered load structure etc. will be the same except for a lower expense ratio. Brokerage/Commission paid to distributors will not be paid / charged under the Direct Plan. *The nomenclature of Existing Plan changed to Regular Plan with effect from 12/06/2015. Default Plan Investors subscribing for units under Direct Plan of a Scheme should indicate Direct Plan against the scheme name in the application form. Investors should also mention Direct in the ARN column of the application form. The table showing various scenarios for treatment of application under Direct Plan or Regular (Existing) Plan is as follows: Scenario Broker Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan 3

4 In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. Taurus Asset Management Company Limited (TAMCO) shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, TAMCO shall reprocess the transaction under Direct Plan from the date of application without any exit load, if applicable. For details on Direct Plan & Options please refer Ongoing Offer Details. 5. Transparency/NAV Disclosure : The NAV will be calculated and disclosed at the close of each business day. The NAV will be updated on the website of the fund: Further it shall endeavour to update the NAV of the Scheme on the website of Association of Mutual Funds in India by 9 p.m. on the same day. The NAV of the Scheme shall be published on a daily basis at least in two daily newspapers. Delay beyond 9 p.m. shall be explained in writing to AMFI and SEBI and shall also be reported in the CTR in terms of number of days of non adherence of time limit for uploading NAV on AMFI's website and the reasons for the same. Corrective steps taken by AMC to reduce the number of occurrences shall also be disclosed. In case the NAVs are not available before the commencement of business hours on the following day due to any reason, AMC shall issue a press release giving reasons for the delay and explain when they would be able to publish the NAVs. NAV will be computed upto four decimal basis. 6. Transaction Charge (Applicable for Existing Plan) : TAMCO shall deduct a "Transaction charge" (TC) on all Purchases/ SIP amount, received from first time mutual fund investors (New*) and existing mutual fund investors through our empanelled distributor/agent (who has chosen for "Opt-in"), and units will be allotted for the balance amount. The TC will be as follows: 4 Description Lumpsum investment of Rs and above SIP/Micro SIP/Opti SIP Purchase where total commitment (installment amount x No of installment) is Rs and above New investor Existing Investor TC = Rs 150 TC = Rs 100 TC = Rs 150 TC = Rs 100 There shall be no transaction charge on subscription below Rs 10,000/-. In case of SIPs, the Transaction charge shall be applicable only if the total commitment through SIPs amount to Rs 10,000/- and

5 above. In such cases the Transaction charge shall be recovered in 3-4 installments. Distributors shall have the option to either opt in or opt out of levying transaction charge based on type of the product. Accordingly, the transaction charges would be deducted from the subscription amounts, as applicable. 7. Consolidated Account Statement : Common Account Statement for each calendar month would be sent to the investor/s those who have transacted during the month. The investor whose transaction** has been accepted by the AMC/ Mutual Fund shall receive the following: (i) On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of and/or SMS within 5 Business Days from the date of receipt of transaction request will be sent to the Unit holders registered e- mail address and/or mobile number. (ii) Thereafter, a consolidated account statement (CAS)^ for each calendar month to the Unit holder(s) in whose folio(s) transaction**(s) has/have taken place during the month on or before 10th of the succeeding month shall be sent by mail/ . ^Consolidated Account Statement (CAS) shall contain details relating to all the transactions** carried out by the investor across all schemes of all mutual funds during the month and holding at the end of the month including transaction charges paid to the distributor. **The word 'transaction' shall include purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, and systematic transfer plan and bonus transactions. (iii) For the purpose of sending CAS, common investors across mutual funds shall be identified by their Permanent Account Number (PAN). (iv) In case of a specific request received from the Unit holders, the AMC/Fund will provide the account statement to the investors within 5 Business Days from the receipt of such request. (v) In the event the account has more than one registered holder, the first named Unit holder shall receive the CAS/account statement. (vi) The CAS shall not be received by the Unit holders for the folio(s) not updated with PAN details. The Unit holders are therefore requested to ensure that the folio(s) are updated with their PAN. Further, the CAS detailing holding across all schemes of all mutual funds at the end of every six months (i.e. September/ March), shall be sent by mail/ on or before 10th day of succeeding month, to all such Unit holders in whose folios no transaction has taken place during that period. The half yearly consolidated account statement will be sent by to the Unit holders whose address is available, unless a specific request is made to receive in physical. 5

6 The statement of holding of the beneficiary account holder for units held in demat will be sent by the respective DPs periodically. Investors are requested to note the following (effective from July 02, 2012): (a) The Consolidated Account Statement (CAS) for each calendar month will be issued on or before 10 th day of succeeding month to the investors who have provided valid PAN. Physical account statements will not be sent to the investors after every financial transaction including systematic transaction. Further CAS will be sent via where any of the folios consolidated has an id or to the id of the first unit holder as per KYC records. (b) For folios not included in CAS, the AMC shall henceforth issue Account Statement to the investors on a monthly basis, pursuant to any financial transaction in such folios on or before 10 th day of succeeding month. In case of a New Fund Offer (NFO), the AMC shall send confirmation specifying the number of units allotted to the applicant by way of a physical statement (SOA) or an /and/or SMS s to the investor s registered address and/or mobile number not later than 5 business days from the date of closure of the NFO. (c) In case of a specific request received from the unit holder, the AMC shall provide the account statement to the investor within 5 business days from the receipt of such request. Applicable for unit holders having a Demat Account With a view to create one record for all financial assets of every individual, SEBI vide its Circular no. CIR/MRD/DP/31/2014 dated November 12, 2014 enabled a single consolidated view of the investments of an investor in Mutual Funds (MF) and securities held in demat form with the Depositories. In accordance with the above, the following shall be applicable for unit holders having a Demat Account: Investors having Mutual Fund investments and holding securities in demat account shall receive a single Consolidated Account Statement from the Depository. Consolidation of account statement shall be done on the basis of PAN. In case of multiple holding, it shall be the PAN of the first holder and pattern of holding. The CAS shall be generated on a monthly basis. If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, depositories shall send the CAS within ten days from the month end. In case there is no transaction in any of demat accounts or mutual fund folios then CAS with holding details shall be sent to the investor on halfyearly basis. The unit holders who do not have Demat Account shall continue to receive the Consolidated Account Statements (CAS) as per the existing practice. 6 With a view to create transparency of information to investors,

7 SEBI vide its Circular No. SEBI/HO/IMD/DF2/CIR/P/2016/89 dated September 20, 2016 issued guidelines for Consolidated Account Statement (CAS) eeffective from October 01, In accordance with this, each CAS issued for the half year (ended September/ March) to the investors shall inter-alia contain: 1. Total purchase value / cost of investment in each scheme. 2. The amount of actual commission paid by AMCs/ Fund to distributors during the half-year period 3. The scheme s average Total Expense Ratio (in percentage terms) for the half-year period for each scheme s applicable plan (regular or direct or both) where the concerned investor has actually invested in. 4. Half-yearly CAS shall be issued to all Fund investors, excluding those investors who do not have any holdings in Fund schemes and where no commission against their investment has been paid to distributors, during the concerned half-year period. 8. Minimum Application Amount & Load Structure Minimum Application Amount Entry Load Exit Load Exit Loads Applicable to Switches Rs and in multiples of Re. 1 thereafter Nil 0.25% if exited on or before 30 days; NIL, if exited after 30 days. Switch to any other schemes (Debt/ Equity) as per the table Exit Load, if any charged to the investor will be credited to the Scheme, net of Service Tax. Minimum Application amount for Additional purchase can be referred on Page No Date of Allotment, AUM, Number of folios and Expense Ratio Name of the Scheme Date of Allotment AUM as on 31 March 2017 (Rs. in Crs) No. of Folios as on 31 March 2017 Expense Ratio* for F.Y (unaudited) Regular Direct Plan Plan 18 th Aug % 0.48% *Excludes Service Tax on Investment Management and Advisory Fees Changes made in the Nomenclature of Scheme Name of the Scheme was changed from Taurus Income Fund to with effect from 9th April, Investment objective, Asset Allocation pattern and Benchmark Index were changed with effect from 9th April, The Investment Pattern and risk profile were changed with effect from November 16, Nomenclature of Existing Plan changed to Regular Plan from 12/06/2015 7

8 I. INTRODUCTION A. RISK FACTORS Standard Risk Factors Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. As the price / value / interest rates of the securities in which the Schemes invest fluctuate, the value of your investment in the Schemes may go up or down Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Schemes. The names of the Schemes do not in any manner indicate either the quality of the Schemes or their future prospects and returns. The Sponsor is not responsible or liable for any loss resulting from the operations of the Scheme beyond the initial contribution of Rs. 2,00,000/- (Rupees Two Lacs Only) made by it towards the setting up of the Mutual Fund. The present schemes are not guaranteed or assured return schemes. Schemes Specific Risk Factors 1. Risks associated with Fixed Income and Money Market Instruments: Price Risk/Interest Risk Fixed Income and Money Market Instruments carry price risk (also known as interest rate risk). Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rate falls, the prices increase. In case of floating rate instruments, the general level of price risk is low (as compared to fixed rate instruments), however, these instruments are also subject to some amount of interest rate risk as the spread over the benchmark rate may change. Prices of long-term securities generally fluctuate more in response to interest rate changes than do short-term securities. Prices of bonds/money market instruments traded change frequently (up or down) which in turn leads to changes in the NAV of the scheme which holds such securities. Credit Risk Credit risk or default risk refers to the risk that the issuer of a fixed income security may default on interest payment or paying back the principal amount on maturity. In case of Government Securities, there is minimal credit risk. Lower rated or unrated securities carry a higher credit risk as compared to higher rated securities. Liquidity or Marketability Risk The ability of a fund to execute sale/purchase orders is dependent on the liquidity of the underlying securities. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. The securities that are listed on the stock exchange carry lower liquidity risk, but the ability to sell these securities is limited by the overall trading volumes. Further, different segments of Indian financial markets have different settlement cycles and may be extended significantly by unforeseen circumstances. Re-investment Risk This refers to the risk that intermediate cash flows received from a security is re invested at a different rate than assumed at the time of purchase. Prepayment Risk Certain fixed income securities give an issuer a right to call back its securities before their maturity date. This right is generally exercised when interest rate has declined. The proceeds received when such right is exercised may get invested at lower yield as the interest rate have declined. This risk of deploying proceeds at lower rate is known as prepayment risk. 2. Risks associated with investments in Government Securities: The Government Securities Market is the largest and most liquid market in India, with the large participants being banks, non-banking finance companies, insurance companies and provident funds which are required by statutes to invest in Government securities. The government securities are being issued in a tenure starting from 3m upto 40 years at present. It is more liquid in nature because of large investor base as compared to corporate bonds. Since, it is being issued over long tenure compared to corporate bonds, it carries higher interest rate risk on long tenure securities. Since the security is sovereign in nature, the credit risk is minimal. 8

9 3. Risks associated with Investing in ADR/ GDR and Foreign Securities: Subject to necessary approvals, a Scheme may also invest in overseas financial assets as permitted under the applicable regulations. The value of an investment in a foreign issuer may depend on general global economic factors or specific economic and political factors relating to the country or countries in which the foreign issuer operates. To the extent the assets of the Scheme are invested in overseas financial assets, there may be risks associated with fluctuations in foreign exchange rates, restriction on repatriation of capital and earnings under the exchange control regulations and transaction procedure in overseas market. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls, political circumstances, bi-lateral conflicts or prevalent tax laws. Investment in foreign securities carries currency risk. Currency risk is a form of risk that arises from the change in price of one currency against other. The exchange risk associated with a foreign denominated instrument is a key element in foreign investment. This risk flows from differential monetary policy and growth in real productivity, which results in differential inflation rates. The risk arises because currencies may move in relation to each other. 4. Risks associated with Investing in Derivatives: Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Fund Manager to identify such opportunities. Identification and execution of the strategies to be pursued by a Fund Manager involve uncertainty and decision of a Fund Manager may not always be profitable. No assurance can be given that a Fund Manager will be able to identify or execute such strategies. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The risks associated with the use of derivatives are different from or possibly greater than the risks associated with investing directly in securities and other traditional investments. Other risks include risk of mispricing or improper valuation and the inability of the derivative to correlate perfectly with underlying assets, rates and indices, illiquidity risk whereby a Scheme may not be able to sell or purchase derivative quickly enough at a fair price. 5. Risks associated with Investing in Securitised Debt: The Scheme may invest in domestic securitized debt such as asset backed securities (ABS) or mortgage backed securities (MBS). Asset Backed Securities (ABS) are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc. Mortgage backed securities (MBS) are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties. ABS/MBS instruments reflect the undivided interest in the underlying pool of assets and do not represent the obligation of the issuer of ABS/MBS or the originator of the underlying receivables. The ABS/MBS holders have a limited recourse to the extent of credit enhancement provided. If the delinquencies and credit losses in the underlying pool exceed the credit enhancement provided, ABS/MBS holders will suffer credit losses. ABS/MBS are also normally exposed to a higher level of reinvestment risk as compared to the normal corporate or sovereign debt. At present in Indian market, following types of loans are securitized: Auto Loans (cars / commercial vehicles /two wheelers) Residential Mortgages or Housing Loans Consumer Durable Loans Personal Loans Corporate Loans The main risks pertaining to each of the asset classes above are described below: Auto Loans (cars/ commercial vehicles/ two wheelers) The underlying assets (cars etc) are susceptible to depreciation in value whereas the loans are given at high loan to value ratios. Thus, after a few months, the value of asset becomes lower than the loan outstanding. The borrowers, therefore, may sometimes tend to default on loans and allow the vehicle to be repossessed. These loans are also subject to model risk. i.e if a particular automobile model does not become popular, loans given for financing that model have a much higher likelihood of turning bad. In such cases, loss on sale of repossessed vehicles could be higher than usual. Commercial vehicle loans are susceptible to the cyclicality in the economy. In a downturn in economy, freight rates drop leading to higher defaults in commercial vehicle loans. Further, the second hand prices of these vehicles also decline in such an economic environment. 9

10 Housing Loans Housing loans in India have shown very low default rates historically. However, in recent years, loans have been given at high loan to value ratios and to a much younger borrower class. The loans have not yet gone through the full economic cycle and have not yet seen a period of declining property prices. Thus the performance of these housing loans is yet to be tested and it need not conform to the historical experience of low default rates. Consumer Durable Loans The underlying security for such loans is easily transferable without the bank s knowledge and hence repossession is difficult. The underlying security for such loans is also susceptible to quick depreciation in value. This gives the borrowers a high incentive to default. Personal Loans These are unsecured loans. In case of a default, the bank has no security to fall back on. The lender has no control over how the borrower has used the borrowed money. Further, all the above categories of loans have the following common risks: All the above loans are retail, relatively small value loans. There is a possibility that the borrower takes different loans using the same income proof and thus the income is not sufficient to meet the debt service obligations of all these loans. In India, there is insufficiency of ready comprehensive and complete database regarding past credit record of borrowers. Thus, loans may be given to borrowers with poor credit record. In retail loans, the risks due to frauds are high. Corporate Loans These are loans given to single or multiple corporates. The receivables from a pool of loans to corporates are assigned to a trust that issues pass through certificates in turn. The credit risk in such PTCs is on the underlying pool of loans to corporates. The credit risk of the underlying loans to the corporates would in turn depend of economic cycles. 6. Risks associated with Securities Lending: The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, in this case the approved intermediary, to comply with the terms of agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply with can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The Mutual Fund may not be able to sell such lent securities and this can lead to temporary illiquidity. 7. Risks associated with Short Selling: The Scheme may enter into short selling transactions, subject to SEBI and RBI Regulations. Short positions carry the risk of losing money and these losses may grow unlimited theoretically if the price of the stock increases without any limit which may result in major losses to the Scheme. At times, the participants may not be able to cover their short positions, if the price increases substantially. If numbers of short sellers try to cover their position simultaneously, it may lead to disorderly trading in the stock and thereby can briskly escalate the price even further making it difficult or impossible to liquidate short position quickly at reasonable prices. In addition, short selling also carries the risk of inability to borrow the security by the participants thereby requiring the participants to purchase the securities sold short to cover the position even at unreasonable prices. 8. Settlement Risk: Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. The inability of the Portfolio to make purchases in intended securities due to settlement problems could cause the Portfolio to miss certain investment opportunities. 9. Regulatory Risk: The value of the securities may be affected by uncertainties such as changes in government policies, changes in taxation, and other developments in the laws and regulations. 10. Risk Associated with Unlisted Securities: Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with securities that are listed on the exchanges or offer other exit options to the investors, including put options. The AMC may choose to invest in unlisted domestic securities that offer attractive yields within the regulatory limit. This 10

11 may however increase the risk of the portfolio. Additionally, the liquidity and valuation of the Scheme s investments due to its holdings of unlisted securities may be affected if they have to be sold prior to the target date of disinvestment. 11. Risks associated with investing in Foreign Securities/ Overseas investment: The risk of investing in foreign securities carries exchange rate risks related to depreciation of foreign currency and the country risks, in addition to the risks of securities in domestic securities. The country risks would include events such as change in regulations or political circumstances like introduction of extraordinary exchange rate controls, restrictions on repatriation of capital due to exchange rate controls, bi-lateral political tensions leading to immobilization of overseas financial assets and the prevalent tax laws of the respective jurisdiction for the execution of trades or otherwise. The foreign securities are issued and traded in foreign currencies. As a result, their values may be affected by changes in exchange rates between foreign currencies and the Indian Rupee as well as between currencies of countries other than India. Restrictions on currency trading that may be imposed by developing market countries will have an adverse effect on the value of the securities of companies that trade or operate in such countries. 11

12 B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme(s) shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme(s). However, if such limit is breached during the NFO of the Scheme, the Fund will endeavor to ensure that within a period of three months or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. In case the Scheme(s) does not have a minimum of 20 investors in the stipulated period, the provisions of Regulation 39(2) (c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme(s) shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. C. SPECIAL CONSIDERATIONS o o o o o o o Prospective investors should study this Scheme Information Document and Statement of Additional Information carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming units, before making a decision to invest / redeem / hold Units. Neither this Scheme Information Document, nor Statement of Additional Information or the Units have been registered in any jurisdiction. The distribution of this Scheme Information Document or Statement of Additional Information in certain jurisdictions may be restricted or totally prohibited to registration requirements and accordingly, persons who come into possession of this Scheme Information Document or Statement of Additional Information are required to inform themselves about and to observe any such restrictions and/ or legal compliance requirements. The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information in connection with offer of units under all the schemes. Prospective investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information as having been authorized by the Mutual Fund, the AMC or the Trustee. Redemption due to change in the fundamental attributes of a Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise due to such redemptions. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that a Scheme is wound up for the reasons and in the manner provided in 'Statement of Additional Information ('SAI')'. The tax benefits described in this Scheme Information Document and Statement of Additional Information are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India as on the date of this Scheme Information Document and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in a Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor. The Mutual Fund may disclose details of the investor's account and transactions there under to those intermediaries whose stamp appears on the application form. In addition, the Mutual Fund may disclose such 12

13 details to the bankers, as may be necessary for the purpose of effecting payments to a investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary. o o In case the AMC or its Sponsor or their affiliates/associates or group companies make substantial investments, either directly or indirectly in a Scheme, present or future, redemption of units by these entities may have an adverse impact on the performance of a Scheme. This may also affect the ability of the other Unit holders to redeem their units. As the liquidity of a Scheme s investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption requests or of a restructuring of a Scheme's portfolio. In view of this, the Trustee has the right, in its sole discretion, to limit redemptions under certain circumstances - please refer to the section "Right to Limit Redemptions" in this document. This Scheme Information Document sets forth concisely the information about the Schemes that a prospective investor ought to know before investing. This Scheme Information Document will remain effective till a material change (other than a change in Fundamental Attributes and within the purview of this Scheme Information Document) occurs and thereafter the changes shall be filed with SEBI and circulated to the unitholders. This Scheme Information Document should be retained for future reference. The particulars of the Schemes in this Scheme Information Document have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date and filed with SEBI and the units offered for public subscription have not been approved or disapproved by the Securities and Exchange Board of India nor has Securities and Exchange Board of India certified the accuracy or adequacy of the Scheme Information Document. D. DEFINITIONS AMFI Applicable NAV Application Supported by Blocked Amount (ASBA) Association of Mutual Funds in India The Net Asset Value applicable for purchases/ redemption/ switches based on the business day and relevant cut-off times on which the application is accepted at an Investor Service Centre ASBA is an application containing an authorization to a self Certified Syndicate Bank (SCSB) to block the application money in the bank account maintained with the SCSB, for subscribing to the NFO Taurus Asset Management Company Ltd. (Earlier known as Creditcapital Asset Asset Management Management Company Ltd.), Investment Manager to Taurus Mutual Fund is a company Co./AMC/ Investment incorporated under the Companies Act, 1956 and authorized by SEBI to act as the Asset Manager/ TAMCO Management Company. A day other than (i) Saturday and Sunday (ii) day(s) on which the money markets are closed/not accessible (iii) a day on which banks in Mumbai and/or RBI are closed for business/clearing (iv) a day on which Stock Exchange, Mumbai and / or National Stock Exchange are closed (v) A day which is a public and/or bank holiday at the Investor Service Centre where the application is received (vi) A book closure period announced by Business Day the AMC/Trustee (vii) A day on which sale and redemption of units is suspended by the AMC/Trustee (viii) A day on which normal business cannot be transacted due to bandhs, floods, storms, strikes or such other events as the AMC/Trustee may specify from time to time. The Trustees/AMC reserves the right to change the definition of Business Day. The Trustee/AMC reserve the right to declare any day as a Business Day or otherwise at any or all Investor Service Centers CBDT Central Board of Direct Taxes. Contingent Deferred Exit charge permitted under SEBI Regulations for a no load scheme. Sales Charge/ CDSC SBI SG Global Securities Services Pvt. Ltd. or any other custodian appointed by the Custodian Trustees DTAA Double Taxation Avoidance Agreement Depository Depository as defined in the Depository Act, Entry Load The charge that is paid by an Investor when he invests an amount in the Scheme Exit Load The charge that is paid by a Unitholder when he redeems Units from the Scheme. 13

14 Foreign Institutional Investors, registered with SEBI under Securities and Exchange Board FIIs of India (Foreign Institutional Investors) Regulations 1995, as amended from time to time As defined under Section 2(b) of the Securities Contract(s) (Regulation) Act, 1956, "Government security" means a security created and issued, whether before or after the Gilts / Government commencement of this Act, by the Central Government or a State Government for the Securities purpose of raising a public loan and having one of the forms specified in Clause (2) of Section 2 of Public Debt Act, 1944 (13 of 1944). HB Portfolio Ltd.(HBPL) HB Portfolio Ltd. is a company incorporated under the Companies Act, 1956 Investor Service Centres or ISCs IMA IT Act Income Tax Act MIBOR Money Market Instruments NAV Designated branches of the AMC / other offices as may be designated by the AMC from time to time. Investment Management Agreement dated August 20, 1993 executed between TITCO and TAMCO and all amendments thereto from time to time. The Mumbai Interbank Offered Rate published once every day by the National Stock Exchange and published twice every day by Reuters, as specifically applied to each contract. Include Treasury Bills, Commercial Papers, Mibor linked instruments Commercial Bills, Government Securities having un-expired maturity up to one year, Call or Notice Money, Certificate of Deposit, Usance Bills, Corporate Debentures, Collateralized Borrowing and Lending Obligation (CBLO) and any other like instruments as specified by RBI/SEBI from time to time. Net Asset Value of the units of the Scheme as calculated in the manner provided in this Scheme Information Document or as may be prescribed by SEBI Regulations from time to time. NAV will be computed up to two decimal places. Non-Resident Indians and Persons of Indian Origin National Stock Exchange NRI/ PIO NSE RBI Reserve Bank of India established under the Reserve Bank of India Act, Sale / Purchase of Securities as may be allowed by RBI from time to time with Repo/Reverse Repo simultaneous agreement to repurchase / resell them at a later date. Registrar & Transfer Agent Scheme TIF SEBI Regulations SEBI or the Board Sponsor Statement of Additional Information (SAI) Stock Exchange Mechanism/ Trading Platforms Trust Deed The Trustee / TITCO Units Unitholder/ Investor Karvy Computershare Pvt. Ltd. or any other R&T agent appointed by the Trustees Collectively referred to all the Scheme included in this document, An Open-ended Bond Scheme The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time by SEBI for the operation and management of Mutual Funds, including any re-enactment thereof. The Securities & Exchange Board of India, a Board established under The Securities and Exchange Board of India Act, 1992, as amended from time to time. HB Portfolio Ltd. It contains details of Taurus Mutual Fund, its constitution, and certain tax, legal and general information. It is incorporated by reference (is legally a part of the Scheme Information Document) MFSS (platform offered by NSE), BSE StAR MF (platform offered by BSE) or any other recognized stock exchange trading plat form, with whom the AMC may register itself to facilitate transactions in mutual fund units. The Trust Deed dated August 20, 1993 as amended from time to time. Taurus Investment Trust Company Ltd. (Earlier known as Creditcapital Investment Trust Company Ltd.) is a company incorporated under the Companies Act, 1956 and authorized by SEBI to act as the Trustee for Taurus Mutual Fund. The interest of the subscribers in the Scheme which consists of unit representing one undivided share in the assets of the Scheme. A person who holds units under the Scheme 14

15 ABBREVIATIONS & INTERPRETATIONS In this SID, the following abbreviations have been used: AMFI: Association of Mutual Funds in India AML: Anti-Money Laundering ASBA: Application Supported by Blocked Amount BSE: Bombay Stock Exchange Ltd. BSE StAR MF: BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds CBLO: Collateralised Borrowing and Lending Obligation CAS: Consolidated Account Statement DFI: Development Financial Institutions ECS: Electronic Clearing System EFT: Electronic Funds Transfer FII: Foreign Institutional Investor FOF: Fund of Funds HUF: Hindu Undivided Family IMA: Investment Management Agreement ISC: Investor Service Centre IST: Indian Standard Time KYC: Know Your Customer MFSS: Mutual Fund Service System NACH: National Automated Clearing House NAV: Net Asset Value NFO: New Fund Offer NRI: Non-Resident Indian NEFT: National Electronic Funds Transfer NRE: Non Resident External NSE: National Stock Exchange PAN: Permanent Account Number NRO: Non Resident Ordinary PIO: Person of Indian Origin PMLA: Prevention of Money Laundering Act, 2002 POS: Points of Service PSU: Public Sector Undertaking RBI: Reserve Bank of India RTGS: Real Time Gross Settlement SEBI: Securities and Exchange Board of India SI: Standing Instructions SIP: Systematic Investment Plan SWP: Systematic Withdrawal Plan STP: Systematic Transfer Plan STT: Securities Transaction Tax INTERPRETATION For all purposes of this SID, except as otherwise expressly provided or unless the context otherwiserequires: The terms defined in this SID include the plural as well as the singular. Pronouns having a masculine or feminine gender shall be deemed to include the other. All references to US$ refer to United States Dollars and Rs. refer to Indian Rupees. A Crore means ten million and a Lakh means a hundred thousand. References to times of day (i.e. a.m. or p.m.) are to Indian Standard Time (IST) and references to a day are to a calendar day including non-business Day. 15

16 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. (ii) All legal requirements connected with the launching of the schemes as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the schemes. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. Date: June 30, 2017 Place: Delhi Anu Suri Compliance Officer 16

17 II INFORMATION ABOUT THE SCHEMES A. TYPE OF THE SCHEME Name of the Scheme Type of Scheme An open-ended bond scheme B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? To generate income and capital appreciation with low volatility by investing in a diversified portfolio of short term debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realised. Comparison of all Existing Debt/ Income Schemes Name of the Existing Scheme Taurus Liquid Fund Taurus Short Term Income Fund Taurus Ultra Short Term Bond Fund Taurus Dynamic Income Fund Asset Allocation Pattern Primary Investment Objective Benchmark Repo/ Reverse Repo/ CBLO : 0% -100% Money Market Instruments (Mibor Linked Instruments, T-Bills, CPs, CDs) and/or other short term debt instruments (Floating Rate Notes, Short Tenor NCDs, PTCs and G-Secs) upto a maturity of 91 days : 0% - 100% Money Market securities and/or debt securities with residual maturity of less than or equal to 3 years: 80% -100% Debt securities with residual maturity greater than 3 years: 0% -20% Money market & debt instruments which have residual maturity and re-pricing tenor not exceeding one year : 50% - 100% Debt Instruments which have residual and re-pricing tenor exceeding one year : 0% - 50% Debt Instruments of Maturity more than 1 year : 1% - 100% Money Market instruments including CBLO, debentures with residual maturity of less than 1 year : 0% - 99% To generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. To generate income and capital appreciation with low volatility by investing in a diversified portfolio of short term debt and money market instruments. To generate returns with higher liquidity and low volatility from a portfolio of money market and debt instruments. To generate optimal returns with high liquidity through active management of the portfolio by investing in Debt and Money Market Instruments. Crisil Liquid Fund Index Crisil Short Term Bond Fund Index Crisil Liquid Fund Index Crisil Composite Bond Fund Index 17

18 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? D. WHERE WILL THE SCHEME INVEST? E. WHAT ARE THE INVESTMENT STRATEGIES? The scheme will adopt flexibility approach for making investments in the complete basket of debt and money market instruments. This flexibility approach will ensure adequate adjustment to the portfolio to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits. Investment Pattern and Risk Profile Under normal circumstances, the Scheme s investment pattern will be as under: Instruments Money Market securities and/or debt securities* with residual maturity of less than or equal to 3 years Debt securities* with residual maturity greater than 3 years Indicative Allocation (% of Net Assets) Risk Profile Minimum Maximum 80% 100% Low to Medium 0% 20% Medium Money Market Instruments include cash, CBLO, Repo, CPs, CDs, Treasury Bills and Government Securities *Securitized debt not to exceed 25% of the net assets of the Scheme. The Scheme will maintain the weighted average portfolio maturity between 1 year and 3 years. However, subject to Regulation, the asset allocation may change from time to time keeping in view market conditions, market opportunities, applicable regulations and economic factors i.e. if the situation demands, the entire investments may be in money market instruments at any particular point of time. Further as stated above, under the following circumstances, majority of the entire portfolio will consist of money market instruments; 1. Uncertainties in the securities market 2. War like situation 3. Before announcement of major policies 4. Receipt of large inflows but corresponding good quality securities not available at attractive prices 5. Expected heavy redemption 6. To avoid loss due to expected adverse interest rate movements 7. To take advantage of intermediate market movements by selling securities and then re-buying them after technical correction It must be clearly understood that the above pattern is only indicative and can vary depending upon the perception of the Fund Manager; the intention being at all times to protect the interests of the unitholders. Apparently, with change in the investment pattern, Fund Manager gets wider opportunities for investing the surplus funds in various instruments. The changed investment pattern will also give required flexibility to the Fund Manager to make investments according to the situation prevailing in the market from time to time. Change in Investment Pattern / Portfolio Rebalancing Notwithstanding what is stated in the above table of investment pattern, the Investment Manager shall have the right to alter the above asset allocation for a short period on defensive considerations keeping in view market conditions and opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages shown above are only indicative and not absolute and they can vary depending upon the perception of the Investment Manager, the intention being at all times to protect the interests of the 18

19 unitholders. Changes in the investment pattern will be for short term and only for defensive consideration. The fund manager will restore asset allocation in line with the asset allocation pattern within 1 month. Notwithstanding the foregoing, the Trustees of the Fund may from time to time in its absolute discretion review and modify the investment pattern and strategy provided such modification is in accordance with SEBI Regulations. Investment Strategy The Corpus of the Scheme, subject to the Regulations, will be invested in any (but not exclusively) of the following debt and money market instruments; i. Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). ii. Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). iii. Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central / State Government guarantee. iv. Corporate debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes, Strips etc. v. Debt obligations of banks (both public and private sector) and development financial institutions. vi. Money market instruments permitted by SEBI / RBI having maturities of upto one year and more than one year. vii. CBLO or alternative investments may be provided by RBI to meet the liquidity requirements. viii. Commercial papers and Commercial bills. ix. Certificate of Deposits. x. Securitised Debt obligations. Investment in such securities will not exceed 25% of the net assets of the Scheme or such other limit as may be decided by the Trustees from time to time. xi. The non-convertible part of convertible securities. xii. Any other domestic fixed income securities including Structured Obligations. xiii. Any international fixed income securities Usance bills Pass through, Pay through or other Participation Certificates representing interest in a pool of assets including receivables. Any other like instruments as may be permitted by RBI / SEBI from time to time. The securities mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. Investments will be made through secondary market purchases, initial public offers, other public offers, placements, right offers (including renunciation) and negotiated deals. The AMC retains the flexibility to invest across all the securities / instruments in debt and money marketing accordance with the asset allocation pattern of the scheme. The Scheme will maintain the weighted average portfolio maturity between 1 year and 3 years. Scheme s investments would be in accordance with the features of the scheme and SEBI Regulations. The Fund will strive to assess risk of the potential investments in terms of credit risk, interest rate risk and liquidity risk. 19

20 Note on Debt & Money Market in India The market for fixed-income securities in India can be briefly divided into the following segments: The money market The market for borrowing/lending monies, and The securities market The market for trading in securities, The derivatives market The market for fixed income derivatives A predominantly institutional market, the key market players are banks, financial institutions, insurance companies, mutual funds, primary dealers and corporates. Provident / pension funds are also present, but not in a very active manner. The Money Market The money market can be classified into two broad categories The market for clean borrowing / lending The market for collateralized borrowing/ lending The market for clean borrowing or lending i.e. borrowing / lending without the backing of any collateral consists of Call Money: The market for overnight borrowing / lending Notice Money: The market for borrowing / lending from 2 days to a fortnight. Term Money: The market for borrowing / lending from a fortnight to six months The market for collateralised borrowing / lending broadly consists of Repo transactions: These are repurchase obligation transactions in which the borrower tenders securities to the lender which is bought back by the borrower on the repurchase date. The price difference between the sale and repurchase of the securities is the implicit interest rate for the borrowing /lending. The eligible underlying securities for these transactions are currently government securities/treasury bills and Corporate Bond. CBLO: CBLO stands for Collateralized Borrowing and Lending obligation. CBLO is a discount instrument introduced by the Clearing Corporation of India Limited (CCIL). They can be traded like any other discount instrument. Lenders buy CBLO s and borrowers sell CBLOs. CCIL manages the risks inherent in issuing these securities through a system of margins and deposits that it takes from both lenders and borrowers. CBLOs can be issued/bought/sold for a minimum of one day to a maximum of 364 days. The Securities Market The market for fixed-income securities can be broadly classified into The market for money market (short term) instruments The market for Government securities The market for Corporate Bonds The market for other instruments such as securitized debt/ PTCs etc Money market securities are generally discount securities maturing within one year at the time of issuance. Instruments satisfying this criterion are treasury bills (obligations of the government), commercial paper (obligations of the corporate sector) and certificate of deposit (obligations of banks). Government securities are medium / long-term debt obligations of the government. The market for government securities is the most liquid segment of the Indian debt market. Most of the secondary market trading is concentrated in government securities. Trading in government securities is now done mostly through an electronic trading, reporting and settlement platform developed by the Reserve Bank of India (RBI) called Negotiated Dealing System (NDS). The role of brokers which was an important element of the Indian bond market therefore stands reduced to that extent. 20

21 Trading in corporate bonds is relatively subdued (in comparison to government securities). Price discovery and trading in this segment is still carried out through the telephone. Attempts at improving the trading, settlement and risk management practices for trading corporate bonds are currently underway. Trading in other instruments such as securitized debt is relatively scarce. Price discovery and trading in this segment too is through the telephone. The Floating rate securities market is at a nascent stage in India. The coupon rate in floating rate securities is linked to an acceptable benchmark. Floating rate securities generally have a coupon rate, which is reset over a regular period depending on the benchmark chosen. The market widely uses the MIBOR benchmarks announced by Independent agencies such as NSE and Reuters. When benchmark interest rate rises, the income generated on these floating rate securities also rise. When the benchmark interest rates fall, the income generated on these floating rate securities also fall. The various instruments and their prevailing yields and liquidity (as on May 15, 2017) are indicated in the following table. The actual yields will, however, vary in line with general levels of interest rates and debt/money market conditions prevailing from time to time. Instruments Yield p.a. Liquidity CBLO 6.21 High 3M Treasury Bill 6.27 High 12M Treasury Bill 6.46 High 5Y Dated Gilt 6.8 High 10Y Dated Gilt 6.81 High 3M PSU Bank CD 6.35 High 3M Non-Mfg. CP 6.75 Medium 1Y PSU Bank CD 6.63 High 1Y Non-Mfg. CP 7.20 Medium Increasingly more companies are raising resource through floating rate securities. Most of such securities are in the form floating rate debentures at a spread over NSE MIBOR. The Government of India has also started issuing floating rate securities. Such floating rate issuances reduce the interest rate risk of the portfolio in which these securities are held. Note: - Board of Trustees in their meeting held on February 22, 2017 decided to suspend fresh sale including SIP/STP/Switch - in applications in the, debt scheme of the fund till further notice pursuant to default in repayment of maturity proceeds of Commercial paper (CP) issued by Ballarpur Industries Ltd (BILT), in order to protect the interest of scheme s investors and to ensure equitable and fair treatment to all class of investors w.e.f February 23, FEATURES i) Borrowing by the Mutual Fund The Schemes may borrow from anybody - corporate including TAMCO, Sponsor and Commercial Banks, up-to a maximum of 20% of the net assets of the Scheme for a maximum duration of 6 months, in order to meet the temporary liquidity needs of the Schemes, for the purpose of re-purchase, redemption of units or payment of interest or dividend to the unitholders, as per clause 44(2) of SEBI (Mutual Fund) Regulations, ii) Portfolio Turnover Portfolio Turnover is the term used by any Mutual Fund for measuring the amount of trading that occurs in a Scheme s portfolio during the given period. All the schemes being open-ended schemes, it is expected that there would be a number of subscriptions and repurchase on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. However, a high turnover would not significantly affect the brokerage and transaction costs. 21

22 The Fund will endeavor to balance the increased cost on account of higher portfolio turnover with the benefits derived thereof. A high portfolio turnover rate is not necessarily a drag on portfolio performance and may be representative of arbitrage opportunities that exist for scrips / securities held in the portfolio rather than an indication of a change in Fund view on a scrip, etc. iii) Investment in Derivative Instruments The Scheme may invest in derivatives instruments such as Futures, Options, Forward Rate Agreements (FRAs) & Interest Rate Swaps (IRS) or such other instruments as may be permitted under the Regulations, in a recognized stock exchange, subject to the frame work specified by SEBI and within the parameters approved by the Trustee company. The Schemes may use techniques and instruments such as trading in derivative instruments to hedge the risk of fluctuations in the value of the investment portfolio. The Schemes will use derivative instruments for the purpose of hedging and portfolio balancing. Hedging does not mean maximisation of returns but only reduction of systematic or market risk inherent in the investment. A derivative is an instrument whose value is derived from the value of one or more of the underlying assets which can be commodities, precious metals, bonds, currency, etc. Common examples of Derivative instruments are Interest Rate Swaps, Forward Rate Agreements, Futures, Options, etc. The Scheme may write (sell) and purchase call and put options in securities in which it invests and on securities indices based on securities in which the scheme invests. Through the purchase and sale of futures contracts and related options on those contracts, the Fund would seek to hedge against a decline in securities owned by the Fund or an increase in the prices of securities which the Fund plans to purchase. The Fund would sell futures contracts on securities indices in anticipation of a fall in stock prices, to offset a decline in the value of its equity portfolio. When this type of hedging is successful, the futures contract increase in value while the Fund s investment portfolio declines in value and thereby keep the Fund s net asset value from declining as much as it otherwise would. Similarly, when the Fund is not fully invested, and an increase in the price of equities is expected, the Fund would purchase futures contracts to gain rapid market exposure that may partially or entirely offset increase in the cost of the equity securities it intends to purchase (short sale). Example 1: Hedging against an anticipated rise in equity prices The scheme has a corpus of Rs.100 crores and has invested Rs.85 crores in equity and still has a cash of Rs.15 crores available to invest. The Fund may buy index futures of a value of Rs.15 crores. The scheme may reduce the exposure to the future contract by taking an offsetting position as investments are made in the equities the scheme wants to invest in. Here, if the market rises, the scheme gains by having invested in the index futures. Event Gain/ (Loss) from derivative position Gain/(Loss) from cash market position Overall Gain/(loss) to Schemes 5% rise in equity price 15*5% = Rs.0.75 crs 85*5% = Rs.4.25 crs Rs.5 crores 5% fall in equity price 15*5% = (Rs.0.75crs) 85*5% = (Rs.4.25 crs) (Rs.5 crores) Example 2: Hedging against anticipated fall in equity prices:- If the Fund has a negative view on the market and would not like to sell stocks as the market might be weak, the scheme of the Fund can go short on index futures. Later, the scheme can sell the stocks and unwind the future positions. A short position in the future would offset the long position in the underlying stocks and this can curtail potential loss in the portfolio. For eg.the scheme has a corpus of Rs.100 crores and is fully invested in equities. If fund manager wishes to reduce the equity exposure to Rs. 80 crores in a short time, he would sell index future contracts of Rs. 20 crores. Event Gain/ (Loss) from derivative position Gain/(Loss) from cash market position Overall Gain/(loss) to Schemes 5% fall in equity price 20*5% = Rs.1 cr 80*5% = (Rs.4.00 crs) (Rs.3 crores) 5% rise in equity price 20*5% = (Rs.1cr) 80*5% = Rs.4.00 crs Rs.3 crores Example 3: Use of IRS 22

23 Assuming the Scheme is having 10% of the portfolio in cash. The fund manager has a view that the interest rate scenario is soft and call rates are unlikely to spurt over the next three months. The fund manager would therefore prefer to receive a higher rate of return on his cash, which he is lending in the overnight call market. In other words, he would like to move to a 91 days fixed interest rate from overnight floating rate. 1. Say Notional Amount : Rs. 2 crores 2. Benchmark : NSE MIBOR 3. Tenor : 91 Days 4. Fixed Rate : 10.25% 5. At the end of 91 days; 6. The Scheme pays : compounded call rates for 91 days is 9.90% 7. TMF receives: Fixed rate at 10.25% for 91 days. In practice, however the difference of the two amounts is settled. Here the Scheme receives Rs x 0.35% x91 / 365 = The players in IRS are scheduled commercial banks, primary dealers, corporate, mutual funds and All India Financial Institutions. Interest Rate Swap (IRS) All swaps are financial contracts, which involves exchange (swap) of a set of payments owned by one party for another set of payments owned by another party, usually through and intermediary (market maker). An IRS can be defined as a contract between two parties (Counter Parties) to exchange, particular dates in the future, one series of cash flow, (fixed interest) for another series of cash flows (variable or floating interest) in the same currency and on the same principal for an agreed period of time. The exchange of cash flows need not occur on the same date. Forward Rate Agreements (FRA) A FRA is an agreement between two counter parties to pay or to receive the difference between an agreed fixed rate (the FRA rate) and the interest rate prevailing on a stipulated future date, based on a notional amount, for an agreed period. In short, in a FRA, interest rate is fixed now for a future period. The special feature of FRAs is that the only payments is the difference between the FRA rate and the Reference rate and hence are single settlement contracts. As in the case of IRS, notional amounts are not exchange. Trading in Derivatives and Strategies: In accordance with SEBI Circular No Cir/IMD/DF/11/2010 dated August 18, 2010, the following exposure limits for investment in derivatives will be applicable to the schemes. i) The cumulative gross exposure through equity, debt and derivative positions should not exceed 100% of the Net Assets of the Schemes. ii) Schemes shall not write options or purchase instruments with embedded written options. iii) The total exposure related to option premium paid must not exceed 20% of the Net Assets of the Scheme. iv) Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. v) Exposure due to hedging positions may not be included in the above mentioned limits subject to the following - a) Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. b) Hedging position cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under limits mentioned in Point1. c) Any derivative instrument used to hedge has the same underlying security as the existing position being hedged. d) The quantity of underlying associated with the derivative position taken for hedging purpose does not exceed the quantity of the existing position against which hedge has been taken. vi) Schemes may enter into plan vanilla interest rate swaps for hedging purposes. The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme. vii) Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned in point1. viii) Definition of exposure in case of Derivative Positions 23

24 Each position taken in derivative shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows: Position Long Future Short Future Option bought Exposure Future Price * Lot Size * Number of Contracts Future Price * Lot Size * Number of Contracts Option Premium paid * Lot Size * Number of Contracts In accordance with SEBI circular DNPD/Cir-29/2005 dates September 14, 2005 (including circular issued by SEBI/RBI/FEMA and other Regulatory bodies thereafter from time to time). Mutual Funds are allowed to trade in derivatives. Mutual Funds can trade in index futures, index options, stock options, stock futures contracts etc. Position Limits The position limits for Mutual Funds and its schemes shall be as under: i. Position limit for Mutual Funds in index options contracts The Mutual Fund position limit in all index options contracts on a particular underlying index shall be Rs. 250 crores or 15% of the total open interest of the market in index options, whichever is higher, per Stock Exchange. This limit would be applicable on open positions in all options contracts on a particular underlying index. ii. Position limit for Mutual Funds in index futures contracts: The Mutual Fund position limit in all index futures contracts on a particular underlying index shall be Rs. 250 crores or 15% of the total open interest of the market in index futures, whichever is higher, per Stock Exchange. This limit would be applicable on open positions in all futures contracts on a particular underlying index. iii. Additional position limit for hedging In addition to the position limits at point (i) and (ii) above, Mutual Funds may take exposure in equity index derivatives subject to the following limits: Short positions in index derivatives (short futures, short calls and long puts) shall not exceed (in notional value) the Mutual Fund s holding of stocks. Long positions in index derivatives (long futures, long calls and short puts) shall not exceed (in notional value) the Mutual Fund s holding of cash, government securities, T-Bills and similar instruments. iv. Position limit for Mutual Funds for stock based derivative contracts The Mutual Fund position limit in a derivative contract on a particular underlyingstock, i.e. stock option contracts and stock futures contracts, stand modified in thefollowing manner:- For stocks in which the market wide position limit is less than or equal to Rs. 250 crore, the Mutual Fund position limit in such stock shall be 20% of the market wide position limit. For stocks in which the market wide position limit is greater than Rs. 250 crore, the Mutual Fund position limit in such stock shall be Rs. 50 crore. v. Position limit for each scheme of a Mutual Fund For stock option and stock futures contracts, the gross open position across all derivative contracts on a particular underlying stock of a scheme of a mutual fund shall not exceed the higher of: 1% of the free float market capitalisation (in terms of number of shares). Or 5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number of contracts). This position limits shall be applicable on the combined position in all derivative contracts on an underlying stock at a Stock Exchange. For index based contracts, Mutual Funds shall disclose the total open interest held by its scheme or all schemes put together in a particular underlying index, if such open interest equals to or exceeds 15% of the open interest of all derivative contracts on that underlying index. Each mutual fund shall have a maximum derivatives net position of 50% of the portfolio (i.e. net assets including cash). Each fund shall decide in advance with formal approval of Board of Trustees the maximum net derivatives exposure in terms of percentage of portfolio value it would allow. Within the overall limits of a maximum derivatives net position of 50% of the portfolio (i.e. net assets including cash), the limits per Scrip/ Instrument shall be specified by the Board of Trustees. Thus, the Board of Trustees 24

25 shall determine the overall exposure limit to derivatives, as well as the derivative limits on individual stocks. Trustees should satisfy themselves that the risk containment measures are in place. At no point in time, the derivative position shall result, even for a few moments on an Intra-day basis, in actual or potential leverage or short sale / short position on any underlying security. No shorting of individual stock without the underlying. All derivative positions shall be backed by cash or stock as the case may be. i.e. all current or potential long positions shall be backed by cash and equivalents at the time of exposure and all current or potential short positions will be fully backed by stock (stocks portfolio for index derivatives). The tenure of the Term deposit placed as margin for trading in derivative shall not exceed 182 days. The gross position of the underlying securities and derivatives shall be considered for the purpose to complying and monitoring stock exposure limit as per Clause 2 of VIIth schedule of SEBI (Mutual Funds) Regulations While calculating the industry exposure for disclosure on monthly basis, the total exposure per scrip including derivative exposure shall be considered. Following are the prudential equity derivatives position limits as set by Board of Trustees: Total exposure Limit of for Hedging/ Portfolio rebalancing Taurus Equity Funds Maximum 20% of the portfolio of a scheme. SEBI Guidelines 50% of the portfolio Limit of derivative exposure on individual stock. Maximum 5% of the portfolio of a scheme. 10% of the portfolio Sr No. Limits on Specific Derivative transaction in an individual Portfolio/Scheme: Following sub-limit has been approved by the Board of Trustees within the overall limit stipulated by SEBI. Table I. Common Derivative Positions and Limits Derivative Action Description Limit 1 Index futures Buy 2 Index futures Sell 3 Stock futures Buy 4 Stock futures Sell Buy futures against cash to protect against rising market Hedging of portfolio against expected market downturn Buy against cash to protect against rising share prices Sell against existing stock Hedging against downside on existing stock in the face of expected volatility in the stock price To the extent of cash / equivalents in the portfolio. Max. limit 20% of portfolio Up to 20% of equity portion of the fund or four times equivalent to cash available, which ever is lower. To the extent of cash / equivalents in the portfolio. Max. limit 20% of portfolio; per scrip limit 5% To the extent of the particular scrip holding in the portfolio; per scrip limit 5% Valuation of Derivative Products: a) The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause 1 of the Eighth Schedule to the SEBI Regulations, as amended from time to time. b) The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the SEBI Regulations as amended from time to time. The Trustee shall offer its comments on the above aspects in the report filed with SEBI under sub-regulation (23) (a) of Regulation 18 of the Regulations. 25

26 iv) Investment in Foreign Securities In terms of SEBI Circular No SEBI/IMD/CIR No 2/122577/08 dated April 8, 2008 the aggregate ceiling for overseas investment is US$ 7 billion and within this overall limit, Mutual Funds can make overseas investments subject to a maximum of US$ 300 million per mutual fund The aggregate ceiling for investment by Mutual Fund in Oversea Exchange Traded Fund (ETF) that invests in securities is US$ 1 billion subject to a maximum of US$ 50 million per Mutual Fund Permissible Investments: 1. ADR(s) and/or GDR(s) issued by Indian or foreign companies. 2. Equity of overseas companies listed on recognized Stock Exchanges overseas. 3. Initial and Follow on Public Offerings for listing at recognized Stock Exchanges overseas. 4. Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt instruments with rating not below investment grade by accredited/ registered credit rating agencies. 5. Money Market Instruments rated not below investment grade. 6. Repos in form of investment, where the counterparty is rated not below investment grade; repo shall not however involve any borrowing of funds by Mutual Funds 7. Government securities where the countries are rated not below investment grade 8. Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities. 9. Short term deposits with banks overseas where the issuer is rated not below investment grade. 10. Units / securities issued by overseas Mutual Funds or unit trusts registered with overseas regulators and investing in a) Aforesaid Securities b) Real Estate Investment Trusts listed on recognized Stock Exchanges overseas or c) Unlisted overseas securities, not exceeding 10% of their net assets Apart from the Mutual Fund Regulations and Guidelines issued from time to time, the Schemes where the SID provides for investment in Foreign Securities, while making overseas investment shall adhere to the specific guidelines issued vide SEBI Circular No SEBI/IMD/CIR No. 7/104753/07 dated September 26, v) Securities Lending By the Mutual Fund If permitted by SEBI under Regulations/guidelines, the Scheme may also engage in securities lending. The AMC shall comply with all reporting requirements and the Trustee shall carry out periodic review as required by SEBI guidelines. Securities lending means the lending of stock to another person or entity for a fixed period of time, at a negotiated compensation. The securities lent will be returned by the Borrower on expiry of the stipulated period. The Investment Manager will apply the following limits, should it desire to engage in Securities lending: o Not more than 20% of the net assets of the Scheme can generally be deployed in securities lending; and o Not more than 5% of the net assets of the Scheme can generally be deployed in securities lending to any single counter party. RISK MANAGEMENT/ MITIGATION STRATEGIES The Fund by utilizing a holistic risk management strategy will endeavor to manage risks associated with investing in equity and debt markets. The Fund has identified the following risks of investing in equity and debt instruments and designed risk management strategies to mitigate and manage such risks. Risk associated with portfolio construction: AMC has incorporated adequate safeguards to manage risks in the portfolio construction process. Risk control would involve managing risk in order to keep it in line with the investment objective of the Scheme. Fund Management team has adequate processes in place for identifying & analyzing the various risk ratios. Various checks have been put in place to adhere to the Investment Restrictions. AMC is using Miles Moneyware Fundware as Front Office System. Market Liquidity Risk and investment in unlisted securities: Fund Manager would invest in those securities that are expected to have more market liquidity. The first access to liquidity is through cash and fixed income securities. The investment in unlisted securities will be minimal and regularly monitored by Investment Monitoring Committee. 26

27 Quality Risk or risk of investing in unsustainable/ weak companies: Investment universe is carefully selected to only include high quality businesses. Concentration Risk: Investment will be made as far as possible across the market capitalization spectrum and industries/sectors keeping the Investment Objective of the Scheme in view. Credit Rating Risk: The endeavor is to invest in fixed income securities which have high credit quality and preferably have high rating from rating agencies such as CRISIL, ICRA, CARE or India Ratings & Research. The probability of rating downgrade is low. The due diligence performed by the fund management team before assigning credit limits should mitigate company specific issues. Interest Rate Risk: Interest rate risk is managed by meticulous determination of average maturity of the portfolio. Extensive analysis of macro economic conditions is carried out to form a view of future interest rates and to position the portfolio accordingly. Risk associated with Stock Lending: At present, there is no significant activity in the Securities Borrowing and Lending market. The Fund has so far not participated in Securities Lending market. However, we understand the risks associated with the securities lending business and the AMC will have appropriate controls (including limits) before initiating any transactions. Procedure followed for investment decisions & Risk control measures (Applicable to All Debt Schemes) The Indian debt market is in a phase of rapid transformation with liquidity and investment opportunities arising in various debt segments along with the introduction of new instruments. The fund manager will try to allocate assets of the scheme between various fixed income securities with the objective of achieving optimal risk adjusted returns. After doing a thorough research on the general macroeconomic condition, political environment, systemic liquidity, inflationary expectations, corporate performance and other economic considerations the portfolio duration and credit exposures will be decided. The AMC has an internal policy for selection of assets of the portfolio. The portfolio is constructed taking into account ratings from different rating agencies, rating migration, credit premium over the price of a sovereign security, general macro economic conditions affecting liquidity and interest rates and such other criteria. Such an internal policy from time to time lays down maximum/minimum exposure for different ratings, norms for investing in unrated paper, liquidity norms, and so on. Through such norms, the Scheme is expected to maintain a high quality portfolio and manage credit risk well. Investments may be made in instruments, which, in the opinion of the Fund Manager, are of an acceptable credit risk and chance of default is minimum. The Fund Manager will normally invest in those debt securities that are rated investment grade by a domestic credit rating agency such as CRISIL, ICRA, CARE, FITCH etc. The Fund Manager will generally be guided by, but not restrained by, the ratings announced by various rating agencies on the assets in the portfolio. The Board of TAMCO has also constituted an Investment Monitoring Committee comprising of two Independent Directors and Managing Director of the Company. Investment Monitoring Committee Meeting is held every month and reviews Investments/disinvestments made since last meeting, Research Reports etc. AMC has incorporated adequate safeguards to manage risks in the portfolio construction process. Risk control would involve managing risk in order to keep it in line with the investment objective of the Scheme. Fund Management team has adequate processes in place for identifying & analyzing the various risk ratios. Various checks have been put in place to adhere to the Investment Restrictions. AMC is using Miles Moneyware Fundware as Front Office System. 27

28 F. FUNDAMENTAL ATTRIBUTES Following are the fundamental attributes of the Schemes in terms of Regulation 18(15A) of the SEBI (Mutual Fund) Regulations: i) Type of Scheme: Please refer to section Type of the Scheme Under the Head Information about the Scheme ii) iii) Investment Objective: Please refer to Section What is the Investment Objective of the Scheme Under the Head Information about the Scheme Investment pattern. Terms of Issue Liquidity provisions such as listing, repurchase, redemption: For liquidity provisions such as redemption, repurchase, listing, right to limit purchase & redemption etc. please refer Section III. UNITS AND OFFER Aggregate fees and expenses charged to the scheme: Please refer Section IV. FEES AND EXPENSES Any safety net or guarantee provided: The Schemes do not provide any safety net or guaranteed or assured returns. In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is carried out unless: A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load. G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? Benchmark : Crisil Short Term Bond Fund Index Performance comparisons of the Schemes will be made vis-à-vis their respective Benchmark. However, the Schemes performance may not be strictly comparable with the performance of the respective Benchmark due to the inherent differences in the constructions of the portfolios. The Board of TAMCO has also constituted an Investment Monitoring Committee comprising of two Independent Directors and Managing Director of the Company. The performances of the schemes of the Mutual Fund are reviewed by the Investment Monitoring Committee at its meeting held every month. Further, in terms of SEBI Circular No.MFD/CIR/16/400/02 dated March 26, 2002 the performance of Schemes will be benchmarked against the performance of their respective Benchmark. The same have been chosen as the benchmark as the asset allocation pattern of the benchmark is in conformity with the declared asset allocation pattern of the schemes in the Scheme Information Document. 28

29 The performance of the Schemes compared to its benchmark indices will be reviewed at every meeting of the Board of Directors of the AMC and Trustee and corrective action as proposed will be taken in case of unsatisfactory performance. In terms of SEBI Circular No.MFD/CIR/01/ 071/02 dated April 15, 2002, the AMC and Trustee may change the benchmark index or select an additional benchmark index after recording adequate justification for carrying out such change. However, change of benchmark index and/ or selecting additional benchmark indices would be done in complete compliance of the relevant guidelines of SEBI in this regard. H. WHO MANAGES THE SCHEME? Name of The Fund Manager & Age Qualification Brief Experience Schemes Managed Mr. Dheeraj Singh 48 years B.E (Hons), PGD in Management (IIM Bangalore) He has 24 years of work experience which he has acquired by working with reputed financial institutions across India He has worked with Kotak Securities Ltd. as VP & Portfolio Manager Equity, Soc Gen as Institutional Equities, Newscorp Owned Indya.com Pvt. Ltd. as Manager - Investment Research, Principal Capital Markets Ltd. as Vice President - Investments and Capital Markets Publishers Pvt. Ltd. as an Analyst. Appointed as Fund Manager w.e.f June 30, 2017 for the following schemes: Taurus Liquid Fund Taurus Ultra Short Term Bond Fund Taurus Dynamic Income Fund 29

30 I. WHAT ARE THE INVESTMENT RESTRICTIONS? Pursuant to SEBI Regulations, the following investment restrictions are applicable to the Schemes: A mutual fund scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. Such investment limit may be extended to 12% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of Directors of the Asset Management Company. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and collateralized borrowing and lending obligations. Provided further that investment within such limit can be made in mortgaged backed securitized debt which are rated not below investment grade by a credit rating agency registered with SEBI. A Mutual Fund scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the Scheme. All such investments shall be made with the prior approval of the Board of Trustees and Board of Asset Management Company. The Mutual Fund under all its schemes will not own more than ten percent of any company s paid up capital carrying voting rights. Transfers of investments from one scheme to another scheme in the same Mutual Fund shall be allowed only if:- i. Such transfers are done at the prevailing market price for quoted instruments on spot basis.explanation: Spot basis shall have same meaning as specified by stock exchange for spot transactions. ii. The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made. A Scheme may invest in another scheme under the same Asset Management Company or any other Mutual Fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the Mutual Fund. Provided that this clause shall not apply to any fund of funds scheme Every Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities : Provided that a mutual fund may engage in short selling of securities in accordance with the frame work relating to short selling and securities lending and borrowing specified by SEBI Provided further that a Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the frame work specified by SEBI Provided further that sale of Government security already contacted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard. Every Mutual Fund shall get the Securities purchased or transferred in the name of the Fund on account of the concerned Scheme, wherever investments are intended to be of long-term nature. Pending deployment of the funds of a Scheme in terms of investment objectives of the Scheme, the Mutual Fund may invest them in short term deposits of scheduled commercial banks. The Scheme will comply with the following guidelines/ restrictions for parking of funds in short term deposits: i. Short Term for such parking of funds by the Scheme shall be treated as a period not exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustees. iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries. v. Trustees shall ensure that no funds of a scheme may be parked in short term deposits of a bank which has invested in that scheme. vi..amc shall not charge any investment and advisory fees for parking of funds in short term deposits of the scheduled commercial banks. No scheme of the mutual fund shall make any investment in 30

31 i. any unlisted security of an associate or group company of the sponsor; or ii. any security issued by way of private placement by an associate or group company of the sponsor; or iii. The listed securities of group companies of the sponsor, which is in excess of 25% of the net assets No scheme of a Mutual Fund shall make any investment in any Fund of Funds scheme. Prudential limits on Portfolio Concentration Risk The total exposure of debt schemes of mutual funds in a particular sector (excluding investments in Bank CDs, CBLO, G-Secs, TBills, short term deposits of scheduled commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 25% of the net assets of the scheme; Provided that an additional exposure to financial services sector (over and above the limit of 25%) not exceeding 15% of the net assets of the scheme shall be allowed only by way of increase in exposure to Housing Finance Companies (HFCs); Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed 25% of the net assets of the scheme. The total exposure of a debt scheme in a Group (excluding investments in securities issued by Public Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of the net assets of the scheme. Such investment limit may be extended to 25% of the net assets of the scheme with the prior approval of the Board of Trustees. For this purpose, a Group means a Group as defined under regulation 2 (mm) of SEBI (Mutual Funds) Regulations, 1996 (Regulations) and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates. All the investment restrictions shall be applicable at the time of making investment. Internal Norms for Investment Restrictions Fund has policy of Internal Norms for Investment Restrictions also within the overall limit prescribed by SEBI which is being reviewed from time to time, depending upon the market conditions. According to this policy, limits on exposure to sectors, industries, companies etc. will be fixed to avoid concentration of portfolio in particular sectors so as to ensure appropriate diversification/security for the Fund. The purpose of this policy will be to make investments in the full spectrum of permitted investments in order to achieve the investment objective of the scheme. Internal risk parameters for limiting exposure to a particular scrip or sector may be prescribed from time to time to respond to the dynamic market conditions and market opportunities. Investment by TAMCO in the Schemes The Asset Management Company (TAMCO) can also invest in any of the schemes, subject to a maximum exposure of 100% of the net worth of TAMCO or as decided by the Board of TAMCO & TITCO from time to time and the AMC shall not be entitled to charge any fees on such investments. It will, however, be subject to 20/25 norms i.e. regarding minimum number of investors and single investor holding contained in guidelines issued by SEBI vide circulars dated December 12, 2003 and June 14, Any scheme may invest in other schemes under the management of TAMCO/ or schemes of any other Mutual Funds. The aggregate inter-scheme investment under TAMCO in schemes under the management of any other AMC shall not exceed 5% of the Net Asset Value of the Fund. No fees shall be charged for investing in other schemes of other funds or any other Mutual Fund. 31

32 J. HOW HAS THE SCHEME PERFORMED? Performance as on 31/ 03/ 2017 (Absolute Returns for a period of 1 year or less and Compounded Annualized (CAGR) for period of more than 1 year) Regular Plan (Growth Option) Period Returns (%) Benchmark Returns (%) # Last 1 year Last 3 years Last 5 years Since Inception Past performance may or may not be sustained in the future Inception Date : 18 th August 2001 # CRISIL Short Term Bond Fund Index Absolute Return 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% -4.00% -6.00% 10.36% 10.11% 10.32% 9.05% 9.66% 8.86% 8.71% 8.47% -5.10% 9.10% Taurus short Term Fund (Regular) Last 5 Financial year (31st March to 31st March) Crisil short Term Bond Fund Index Direct Plan (Growth Option) Period Returns (%) Benchmark Returns (%) # Last 1 year Last 3 years Since Inception Past performance may or may not be sustained in the future Inception Date : 1 st January 2013 # CRISIL Short Term Bond Fund Index Absolute Return 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% -4.00% -6.00% 10.25% 9.82% 8.86% 10.32% 9.11% 8.47% -4.82% 9.10% Taurus short Term Fund (Direct) Last 3 Financial year (31st March to 31st March) Crisil short Term Bond Fund Index 32

33 PORTFOLIO HOLDINGS OF THE SCHEME AS ON MARCH 31, 2017 Company Name Industry / Rating % of Scrip (AUM) CBLO The Clearing Corporation of India Ltd TOTAL - CBLO Treasury Bills 91 DAY T-BILL Sovereign 0.37 TOTAL - TREASURY BILLS 0.37 CASH & CASH RECEIVABLES 0.40 Total Note: Following is the website link to obtain scheme s latest portfolio holding 33

34 III UNITS AND OFFER This section provides details you need to know for investing in a scheme. A. New Fund Offer (NFO) This Scheme is an ongoing scheme and so this section is not applicable. B. Ongoing Offer Details Ongoing Offer Period This is the date from which the scheme will reopen for subscriptions/redemptions after the closure of the NFO period. Ongoing price for subscription (purchase)/switch-in (from other schemes/plans of the mutual fund) by investors. This is the price you need to pay for purchase/switch-in. Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors. This is the price you will receive for redemptions/switch outs. Example: If the applicable NAV is Rs. 10, exit load is 1% then redemption price will be: Rs. 10* ( = Rs Introduction of Direct Plan for investing Directly with the Fund (Applications not routed through distributors) The Scheme is an open-ended scheme and units are available for sale and repurchase on all business days at the applicable Net Asset Value. At the applicable NAV At the applicable NAV subject to prevailing exit loads. Securities Transaction Tax (STT) shall be percent i.e. 0.1 basis point on the seller on sale/ redemption of units in equity schemes. In accordance with Para D titled Separate Option for direct investments under Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012 issued by Securities and Exchange Board of India (SEBI), a separate plan for direct investments (i.e. investments not routed through an AMFI Registration Number (ARN) Holder ( Distributor ) (hereinafter referred to as Direct Plan ) has been introduced w.e.f. January 01, 2013 as under: 1. Introduction of Direct Plan: Direct Plan is only for investors who purchase/subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. 2. Scheme eligibility: Direct Plan has been introduced in Taurus Starshare (hereinafter collectively referred to as the Scheme ) 3. Plans / Options/ Sub-options: All Plans / Options/ Sub-options offered under the Schemes ( Regular (Existing) Plan ) are also available for subscription under the Direct Plan. Thus from the Effective Date, there are two plans available for subscription under the Schemes viz., Regular (Existing) Plan and Direct Plan. Portfolio of the Scheme under the Regular (Existing) Plan and Direct Plan are common. 4. Scheme characteristics : Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms & conditions including load structure is the same for the Regular (Existing) Plan and the Direct Plan except that : Direct Plan has a lower expense ratio excluding distribution expenses, commission, etc. 34

35 and no commission for distribution of units is paid/charged under the Direct Plan. 5. Applicable NAV and allotment of units: The starting Net Asset Value (NAV) for the Direct Plan is not at par, but at the same NAV of the Regular (Existing) Plan on the day of first purchase in Direct Plan. 6. Eligible investors / mode for applying: All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Schemes are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund (except Stock Exchange Platform(s) and all other Platforms(s) where investors applications for subscriptions of units are routed through Distributors). 7. How to apply : Investors subscribing under Direct Plan of a Scheme will have to mention Direct Plan against the Plan Column in the application form Example: Investors subscribing under Direct Plan of will have to indicate the Scheme/ Plan name in the application form as follows: Name of the Scheme: Plan : Direct Plan Option : Growth or Dividend Payout or Dividend Reinvestment Investors should also indicate Direct in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but Direct Plan is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where application is received for Existing Plan without Distributor code or Direct mentioned in the ARN Column, the application will be processed under Direct Plan. 8. Existing Investments : (a) Investors wishing to transfer their accumulated unit balance held under Regular (Existing) Plan (through lumpsum, systematic investments made with or without distributor code) to Direct Plan will have to switch/redeem their investments (subject to applicable Exit Load, if any) and apply under Direct Plan. (b) Investors who have invested without Distributor code and have opted for Dividend Reinvestment facility under Regular (Existing) Plan may note that the dividend will continue to be reinvested in the Regular (Existing) Plan only. 9. Investments through systematic route: (a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) / Dividend Sweep facility, etc., registered prior to 01/01/2013 without any distributor code under the Regular (Existing) Plan, installments falling on or after 01/01/2013 will automatically be processed under the Direct Plan. (b) Investors who had registered for Systematic Investment Plan facility prior to 01/01/2013 with distributor code and wish to invest their future installments into the Direct Plan, should make a written request to the Fund in this behalf. The Fund will take atleast 15 days to process such requests. Intervening installments will continue in the Regular (Existing) Plan. (c) In case of the following facilities which were registered under the Regular (Existing) Plan prior to 01/01/2013, the future installments shall continue under the Regular (Existing) Plan: (i) Systematic Transfer Facilities (registered with Distributor Code) (ii) Dividend Sweep Facilities (registered from a folio where investments were made with Distributor code) In case such investors wish to invest under the Direct Plan through these facilities, they would have to cancel their existing enrolments and register afresh for such facilities. 10. Redemption requests: Where Units under a Scheme are held under both Regular (Existing) and Direct Plans and the redemption/switch request pertains to the Direct Plan, the same must clearly be mentioned on the request (along with folio number), failing which the request would be processed from the Regular (Existing) Plan. 35

36 However, where Units under the requested Option are held under one Plan, the request would be processed under such Plan. 11. Exit Load: (a) Switch from Regular (Existing) Plan of a Scheme without ARN Code (whether the investments were made before or after 01/01/2013) to Direct Plan of the Scheme will not attract the applicable exit load, if any. For any subsequent switch-out or redemption from the Direct Plan, the holding period of applicability of load will be considered from the date of initial investment in the Regular (Existing) Plan. (b) Switch from Regular (Existing) Plan of a Scheme under ARN Code (whether the investments were made before or after 01/01/2013) to Direct Plan of the Scheme will attract applicable exit load, if any. However, any subsequent switch-out or redemption of such investments from the Direct Plan will not be subject to any exit load. (c) Switch from Direct Plan of Scheme to Regular (Existing) Plan (under ARN code) of the Scheme will not attract applicable exit load. For any subsequent switch-out or redemption from the Regular (Existing) Plan, the holding period for applicability of load will be considered from the date of such switch to Regular (Existing) Plan. 12. Tax consequences: Switch/redemption may entail tax consequences. Investors should consult their professional tax advisor before initiating such requests. Cut off timing for subscriptions/ redemptions/ switches This is the time before which your application (complete in all respects) should reach the official points of acceptance. I. PURCHASES (For all applications for amounts less than Rs 2 lakhs) 1. In respect of valid applications received up-to 3:00 pm along with a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable. 2. In respect of valid applications received after 3:00 pm along with a local cheque or demand draft payable at par at the place where the application is received, the closing NAV of the next business day shall be applicable. 3. However, in respect of valid applications with outstation cheques/demand drafts not payable at par at the place where the application is received, closing NAV of the day on which cheque/demand draft is credited shall be applicable. Applicable NAV for applications for Rs 2 lacs and above In respect of valid applications for purchase/switch/sip/stp for Rs 2 lakhs and above received upto 3 p.m. at the official points of acceptance, the closing NAV of the day, on which the funds are available for utilization before the cut off time of 3 p.m. shall be applicable for allotment of units. It is clarified that funds availability will be determined by the AMC based on cash management feeds received from the banks as regards the funds credited to its collection accounts. Further, the closing NAV of the day on which the funds are available for utilization shall be applied where the aggregated amount of investments is Rs 2 lacs and above for all open-end schemes of Taurus Mutual Fund (except Taurus Liquid Fund) by following the below mentioned practice of aggregating split transactions : a. All transactions received on the same day (as per Time stamp rule) b. Transactions to include purchases, additional purchases, excluding Switches, SIP/STP/Opti SIP/ Opti STP and various other eligible systematic transactions. c. Aggregations to be done on the basis of investor/s PAN. In case of joint holdings, transactions with similar holding structure to be aggregated,similar to the principle applied for compilation of Consolidated Account Statement (CAS) d.all transactions to be aggregated where investor holding pattern is same as stated above, irrespective of whether the amount of the individual transaction is above or below Rs 2 lacs. e. Only transactions in the same scheme to be clubbed. This will include transactions at 36

37 option level (Dividend, Growth, Direct). f. Transactions in the name of minor received through guardian shall not be aggregated with the transaction in the name of same guardian. The decision of the AMC in this regard will be final. II. REDEMPTIONS a) In respect of valid applications received upto 3:00PM, same day s closing NAV shall be applicable. b) In respect of valid applications received after 3:00 PM, the closing NAV of the next business day shall be applicable. III. SWITCH TRANSACTIONS Valid applications for switch out shall be treated as redemptions and for switch in shall be treated as purchases and the above guidelines for purchases and redemptions shall be applicable. The Cut-off timings for Subscriptions/ Redemptions & Switches are explained by means of the following tables for better understanding: All Purchase (inflow) transactions Scheme Type Debt Fund Amount >= 2 lakhs < 2 lakhs New Purchase / Additional Purchase / SIP Application Time Credit in Bank A/c (same day) NAV Applicability Before 3.00 pm Before 3.00 pm Day on which funds are credited. Before 3.00 pm After 3.00 pm After 3.00 pm Before 3.00 pm Next Business day After 3.00 pm After 3.00 pm Before 3.00 pm Day of receipt of N.A. application After 3.00 pm Next Business day 37

38 SWITCH OUT from DEBT FUND Switch Out / Redemption Debt Fund Debt Fund Debt Fund Switch In / Purchase Liquid Fund Debt Fund Equity Fund Amount of Switch Any Amount >= 2 lakhs < 2 lakhs >= 2 lakhs < 2 lakhs Transaction Day Business Day (T) (Mon Thurs) Business Day (T) (Fri or day preceeding holiday) Business Day (T) (Mon Thurs) Business Day (T) (Fri or day preceeding holiday) Business Day (T) (Mon Thurs) Business Day (T) (Fri or day preceeding holiday) Business Day (T) (Mon Thurs) Business Day (T) (Fri or day preceeding holiday) Business Day (T) (Mon Thurs) Business Day (T) (Fri or day preceeding holiday) Switch Out Business Day (T) Business Day (T) (Friday) Business Day (T) Business Day (T) (Friday) NAV Applicability Switch In Business Day (T) Day preceeding the next Business Day (Sunday/Holiday) Next Business Day (T+1) Next Business Day (T+1/ Monday) Business Day (T) Business Day (T) (Friday) Next Business Business Day (T) Day (T+1) Next Business Business Day (T) Day (T+1/ Monday) Business Day (T) Business Day (T) (Friday) All multiple applications for investment of the Unit holders PAN and holding pattern level in a Scheme (irrespective of amount or the plan/option) received on the same Business Day, will be aggregated. If the total amount equals to Rs. 2 lakh or more the applicable Net Asset Value would be as per the above table for applications above Rs 2 lakhs. Where can the applications for purchase/ redemption switches be submitted? Minimum amount for purchase Minimum Amount for Additional Purchase Plans & Options Offices of Taurus Asset Management Company Limited andnotified Investor Service Centres of M/s. Karvy Computershare Pvt Limited and any other official point of acceptance as may be declared by the AMC, from time to time. Rs and in multiples of Re. 1 thereafter Rs and in multiples of Re. 1 thereafter The Scheme will offer two plans : Regular (Existing) Plan and Direct Plan Regular (Existing) Plan: This Plan is for investors who wish to route their investment through any distributor. Direct Plan shall be available for such investment applications which are not routed through a distributor. All the features of the Direct Plan under Scheme like the investment objective, asset allocation pattern, investment strategy, risk factors, facilities offered, load structure etc. will be the same except for a lower expense ratio. Brokerage/Commission paid to distributors will not be paid / charged under the Direct Plan. Default Plan Investors subscribing for units under Direct Plan of a Scheme should indicate Direct Plan against the scheme name in the application form. Investors should also mention Direct in the ARN column of the application form. The table showing various scenarios for treatment of application under Direct Plan or Regular (Existing) Plan is as follows: 38

39 Scenario Broker Code mentioned Plan mentioned by Default Plan to by the investor the investor be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. Taurus Asset Management Company Limited (TAMCO) shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, TAMCO shall reprocess the transaction under Direct Plan from the date of application without any exit load, if applicable. Under both the Plans the Scheme(s) will offer the following options: Option Sub-option Growth Dividend Payout Dividend Dividend Reinvestment Default Option: If the investor does not clearly specify the choice of Option at the time of investing, the default option will be treated as Growth. If the investor does not clearly specify the choice of Payout /Reinvestment within the Dividend Option, it will be treated as a Reinvestment sub-option. Dividend Sweep Option Under the Dividend Sweep Option (DSO), the investors may opt to automatically sweep (invest) the net dividend amount payable under the Scheme (hereinafter referred to as Source Scheme ) into any other open-ended ed schemes (hereinafter referred to as Target Scheme ) of Taurus Mutual Fund on the ex-dividend date (i.e., the immediate next business day after the Record Date) into the Target Scheme specified by the investor, at the applicable NAV of the Target Scheme and accordingly applicable number of units will be allotted in the Target Scheme. There is no minimum amount prescribed for dividend amount to be sweep to the Target Scheme via DSO. Accordingly, the provision for Minimum Application Amount specified in the respective Target Scheme s SID will not be applicable for investment made via DSO. 1. Under the Dividend Sweep Option (DSO), the investors may opt to automatically transfer (invest) the net dividend amount (i.e., net of statutory levy / taxes, if any) payable under the Scheme (hereinafter referred to as Source Scheme ) into any other scheme (hereinafter referred to as Target Scheme ) of Taurus MutualFund on the exdividend date (i.e., the immediate next business day after the Record Date) into the Target Scheme specified by the investor, at the applicablenav of the Target Scheme and accordingly applicable number of units will be allotted in the Target Scheme, subject to the terms and conditions of the respectivetarget Scheme. 2. The minimum amount of investment is not applicable for investment made through DSO in the Target Schemes. 39

40 3. The Units allotted in the Target scheme against investment via DSO will be subject to the applicable Exit Load of the Target scheme. 4. Unitholder(s) are advised to read the SID/KIM of Target Scheme(s) carefully before opting for DSO. 5. Unit holders who wish to enroll for the DSO facility are required to fill in and submit a prescribed DSO Enrolment Form complete in all respects at any of theofficial Point of Acceptance (OPA) of TMF, separately for each Scheme/Plan/Option. The enrolment for DSO facility shall be for all units under the DividendOption of the respective Source Scheme. Request for dividend sweep to multiple schemes are not allowed, partial Dividend Sweep and partial Dividend Payout / Reinvestment are also not permitted. If the unitholder fails to specify the option i.e. growth, bonus or dividend of the target schemes then, the default shall be growth option and the default option under dividend shall be dividend re-investment option. 6. The DSO Enrollment Form is available with the OPAs and distributors of TMF as well as on the website of TMF, namely, 7. Enrolment under the DSO facility will automatically override any previous instructions of the Unitholder for Dividend Payout or Dividend Reinvestment facility,as the case may be, in the Source Scheme and will also apply to additional units allotted in the Source Scheme subsequently on account of additional subscription / switch-in / SIP / STP etc. 8. The request for enrolment for DSO must be submitted at least seven (7) working days prior to the Record Date for the dividend in the Source Scheme. Hence investors should submit the DSO enrolment request sufficiently in advance. In case of this condition not being met, the DSO enrolment would be effective from the immediately succeeding Record Date of the dividend in the Source Scheme. Consequently, any dividend declared between the date of acceptance of thedso Enrollment Form and date of registration thereof by the Registrar will be paid out or reinvested in the Source Scheme, as applicable. 9. Unit holders will have the right to opt out of DSO facility at any time by submitting a written request. At the time of discontinuation of DSO facility, the unit holdersshould specify their choice of option i.e. Dividend Reinvestment or Dividend Payout, in the Source Scheme, failing which, the default sub-option, i.e., DividendReinvestment will be applicable. 10. Request for cancellation of DSO must be submitted at least seven (7) working days prior to the Record Date for the dividend in the Source Scheme. Any dividend declared in the Source Scheme during the interim period will be swept to the Target Scheme. 11. The Account Statement for DSO transactions will be sent by post or by (if id. is provided) within 30 days of dividend sweep. 12. It is expressly clarified that the dividends so swept and invested in Target Scheme shall be constructive payment of dividends to the Unit holder/s and constructive receipt of the same amount from each Unit holder for investment in units of Target Scheme. It is further clarified that the dividend amount transferred would be treated as switch-in / subscription transaction in the Target Scheme and will be liable to PAN and KYC provisions, as may be applicable. 13. TMF is not guaranteeing or assuring any dividend under any of the schemes. All dividend distributions are subject to investment performance of the respective schemes, availability of distributable surplus and at the discretion of the Trustee. 14. The AMC reserves the right to change/ modify the terms and conditions of the DSO without prior notice or without assigning any reason thereof. If DSO facility iswithdrawn from any Source Scheme or Target Scheme, all investors who have opted for DSO will be shifted under Dividend Reinvestment Option in thesource Scheme and the unitholders will be sent suitable intimation. 40

41 Redemptions and Minimum balance to be maintained and consequences of non maintenance Implementation of Know Your Customer (KYC) norms under Prevention of Money Laundering Act, through a designated KYC Registration Authority (KRA) The redemptions can be for any amount or any number of units, subject to the minimum balance in Rupees, which is required to be maintained in the account, at the time of the redemption. TAMCO reserves the right to close an investor s account if the value of the unit balance in the account falls below the minimum amount of investment in all the schemes. In such an event, TAMCO reserves the right to compulsorily redeem the balance units in the account completely at the applicable redemption price with or without giving him the option to invest sufficient funds to bring the value of the unit balance in the account to the required limits, within 30 days after the date of such shortfall. The Fund may revise the minimum/maximum amounts and methodology for redemptions as and when necessary. Such change may be brought about after taking into account the cost structure for a transaction account and / or Market practices and / or the interest of the unitholders. Further such changes shall be carried out on a prospective basis from the date of notification of such change and would not, in any manner, be prejudicial to the interests of the investors who have joined the scheme before such notification. Any changes would be informed to unitholders by way of an advertisement. TMF is committed to complying with all applicable Anti Money Laundering and KYC laws and regulations. TMF recognizes the value and importance of creating a business environment that strongly discourages money launderers from using TMF. To that end, certain policies have been adopted by the AMC. The need to KYC is vital for the prevention of money laundering. Compliance with KYC requirements has been made mandatory for Resident Individuals, Non Resident Individuals/PIOs/OCIs, Any investor investing through a distributor under special arrangement generally titled as a * Channel Investor/Channel Distributor and all Non Individual Investors like Corporate, Partnership, Firms, Trust HUF, etc. *Channel Distributors are those distributors who have an arrangement with Taurus Asset Management Company Ltd. wherein they will submit the mutual fund transactions details (viz. subscriptions/ redemptions/switches, other non-financial transactions, etc.) of their clients electronically to Taurus Asset Management Co Ltd. The above category of investors for the purpose of KYC compliance shall include (i) their constituted Power of Attorney (PoA) holder, in case of investments through a PoA; and (ii) each of the applicants, in case of application in joint names. a. KYC registered under KYC Registration Agency (KRA): Units held in account statement (non-demat) form It is mandatory for the investors to quote the KYC Compliance Status of each applicant (guardian in case of minor) in the application and attach proof of KYC Compliance viz. KYC acknowledgement letter for all purchases/ switches/ registrations for Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) Dividend Transfer Plan (DTP). Applicants intending to apply for units through a Power of Attorney (PoA) must ensure that the issuer of the PoA and the holder of the PoA must mention their KYC Compliance Status and attach proof of KYC Compliance at the time of investment. SEBI has introduced a common KYC Application Form for all the SEBI registered intermediaries. New investors are therefore requested to use the common KYC Application Form and carry out the KYC process including In-Person Verification (IPV) with any SEBI registered intermediaries including mutual funds. The KYC Application Forms are also available on our website Existing KYC compliant investors of the Fund can continue the practice of providing KYC Acknowledgement Letter/ Printout of KYC Compliance Status downloaded from CDSL Ventures Ltd. (CVL) website ( using the PAN at the time of investment. Once the investor has done KYC with any SEBI registered intermediary, the investor need not undergo the same process again with the Fund. Units held in electronic (demat) form For units held in demat form, the KYC performed by the Depository Participant of the 41

42 applicants will be considered as KYC verification done by the Trustee / AMC. In the event of non compliance of KYC requirements, the Trustee/AMC reserves the right to freeze the folio of the investor(s) and effect mandatory redemption of unit holdings of the investors at the applicable NAV, subject to payment of exit load, if any. For further details, please refer Section Know Your Customer (KYC) Compliance under Statement of Additional Information available on our website b. Central KYC Records Registry (CKYCR): The Government of India vide their Notification dated November 26, 2015 authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to act as and to perform the functions of the Central KYC Records Registry under the said rules, including receiving, storing, safeguarding and retrieving the KYC records under the Prevention of Money-Laundering Act, SEBI required all the market intermediaries to update/upload KYC details of the new customer/investors (not KYC-KRA compliant) on CERSAI s online platform. CERSAI is a centralized repository of KYC records of customers/investors in the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector with an objective to reduce the burden of producing KYC documents and getting those verified every time when the customer/investors creates a new relationship with a financial entity. Central KYC (CKYC) will store all the customer/investor information at one central server that is accessible to all the financial institutions. After opening a KYC account under the CKYC, customer/investor will get a 14-digit identification number ( KYC Number ) and that the same may be quoted by the investor wanting to invest in mutual funds. Further, the Mutual Fund/AMC is required to check whether the PAN of the investor has been updated in CKYCR. In case the PAN has not been updated, the Mutual Fund/AMC shall collect a self-certified copy of the investor s PAN card and update/upload the same in CKYCR. In case the Investor uses the old KRA KYC form for updating of any KYC information, such investor shall be required to provide additional/missing information only by using the supplementary CKYC form or fill the new CKYC form. Non PAN based KYC applicability through KRA: For certain nature of transactions and type of clients, PAN is not mandatory. In such cases common standard KYC through KRAwill continue to apply. Such nature of transactions and type of clients and the documents required for successful completion of KYC is mentioned below: 1. In case of transactions undertaken on behalf of Central Govt. and /or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc. 2. Investors residing in the state of Sikkim** 3. UN entities/multilateral agencies exempt from paying taxes/filingtax returns in India. 4. Micro schemes such as Systematic Investment Plan (SIP), whereaggregate of installments in a rolling 12 month period or in afinancial year i.e. April to March does not exceed Rs 50,000. **Investments from Investors residing in Sikkim Special condition: 1. Proof of address of Sikkim state and application form should mention the same address. Documents required: 1. Standard specified identification instruments like Voter ID card, Government/Defense ID card, Card of Reputed employer, Driving License, Passport in lieu of PAN. 2. Proof of address copy. It is clarified that where identification documents photo contains the address of the investor, a separate proof of address is not required. 3. Supporting documents copy shall be attested by a KYD Compliant ARN holder mentioning the ARN number or attested by any competent authority, as described above. These documents will be required to be submitted along with a KYC application form with valid IPV, as described above. 42

43 However, it is clarified that Investors with PAN are required to follow PAN based common standard KYC through KRA procedure as mentioned above. For complying with the KYC requirement all the investors could approach POS or KRA for submitting their KYC Application Form (KAF) and the mandatory documents of Proof of Identity and Proof of Address. The list of documents required for a valid KYC Application by Resident Indian and the process is mentioned above Please also read more detailed instructions on the reverse of the KYC application form. After verification of the KYC application form and accompanying documents, investors will receive a letter certifying their KYC compliance. Investors are requested to read the KYC section of Statement of Additional Information (SAI) in detail. Investors are requested to note that KYC would be subject to verification of the veracity of the claim of the investors by collecting sufficient documentary evidence. The AMC reserves the right to ask for the necessary documentation to the satisfaction of the Mutual Fund. The AMC, under powers delegated by the Trustee, shall have absolute discretion to reject any application, prevent further transactions by a unitholder, if after due diligence, the investor/ unitholder/ person making the payment on behalf of the investor does not fulfill the requirements of the KYC Policy or the AMC believes that the transaction is suspicious in nature with regard to money laundering. Permanent Account Number (PAN) Ultimate Beneficial Ownership (UBO) Currently, the AMC is also acting as POS at its offices as listed at In accordance with AMFI s Best Practices Guidelines Circular no. 62/ dated September 18, 2015, w.e.f. January 01, 2016 it shall be mandatory for all investors to provide additional KYC information such as Income details, Occupation, Association with Politically Exposed Person, Networth etc. as mentioned in the application form. The AMC reserves the right to reject the application/ transaction if such information is not provided. In accordance with SEBI circulars dated April 27, 2007 and June 25, 2007, with effect from July 02, 2007, PAN issued by the Income Tax authorities will be used as the sole identification number for all investors transacting in the securities market including mutual funds, irrespective of the amount of transaction. Thus, on and from January 01, 2008, it will be mandatory for all investors to provide a certified* copy of the PAN card for all transactions in units of the Scheme. In case of investors who do not provide a certified* copy of the PAN card, the application for transaction in units of the Scheme is liable for rejection. However, vide Circular No.MRD/DOP/MF/CIR.08/2008 dated April 3, 2008 issued by SEBI, it has been clarified that Individuals and Non-Individuals residing in Sikkim location are exempted from submission of PAN. They have, however, to comply with KYC norms. *Investors are requested to submit a copy along with the original for verification at the investor service centers of the Fund / KARVY, which will be returned across the counter. A Bank Manager s attestation or a Notarized copy will also be accepted. In line with the Prevention of Money Laundering Act 2005, (PMLA) and SEBI Circular no. CIR/MIRSD/2/2013 dated January 24, 2013 and AMFI s Best Practices Guidelines Circular no. 62/ dated September 18, 2015, investors may note w.e.f. January 01, 2016 it shall be mandatory for existing investors/ unitholders to provide Ultimate Beneficial Ownership details failing which the AMC shall reject the transaction for additional subscription (including switches) Taurus Mutual Fund reserves the right to reject application / restrict further investments or seek additional information from investors who have not provided the requisite information on beneficial ownership. In the event of change in UBO, investors are required to immediately update the details with Taurus Mutual Fund / Karvy Computershare Private Limited (Registrar). Foreign Account Tax Compliance Act (FATCA) FATCA is an acronym for Foreign Account Tax Compliance Act (FATCA), a United States Federal law to increase compliance by US tax payers and is intended to bolster 43

44 and Common Reporting Standards (CRS) Suspicious Transaction Employee Unique Identification Number (EUIN) Bank Account Details efforts to prevent tax evasion by the US tax payers with off shore investments. The Government of India and the United States of America (US) have reached an agreement in substance on the terms of an Inter-Governmental Agreement (IGA) and India is now treated as having an IGA in effect from April 11, The AMC/Mutual Fund are likely to be classified as a Foreign Financial Institution (FFI) (Investment Entity as per Annexure 1(i) under the FATCA provisions). In accordance with the regulatory requirements related to FATCA/CRS read along with SEBI Circular no. CIR/MIRSD/2/2015 dated August 26, 2015 and AMFI s Best Practices Guidelines Circular no. 63/ dated September 18, 2015 regarding uniform implementation of FATCA/ CRS requirements, w.e.f. January 01, 2016 all investors will have to mandatorily provide the details and declaration pertaining to FATCA/ CRS for all new/ existing accounts opened, failing which the AMC shall reject the application. If after due diligence, the AMC believes that the transaction is suspicious in nature as regards money laundering, the AMC shall report any suspicious transactions to competent authorities under the PMLA and rules/ guidelines issued there under by SEBI and RBI, furnish any such information in connection therewith to such authorities and take any other actions as may be required for the purposes of fulfilling its obligations under the PMLA without obtaining the prior approval of the investor/ Unit Holder/ a person making the payment on behalf of the investor. Pursuant to Securities and Exchange Board of India (SEBI) circular number CIR/IMD/DF/21/2012 dated September 13, 2012, investor/s shall have the provision in the application / transaction form to specify the unique identity number (EUIN) of the employee/relationship manager/sales person (sales person) of the distributor interacting with the investor/s for the sale of mutual fund products, along with the Association of Mutual Fund in India (AMFI) Registration Number (ARN) of the distributor. Investors are hereby requested to note the following with respect to EUIN: 1. AMFI has allotted EUIN to all the sales person of AMFI registered distributors and to all the Individual ARN holders including senior citizens. 2. Investor/s shall specify the valid ARN code, and the valid EUIN of the sales person/individual ARN holders in the application/transaction form. This will assist in handling the complaints of mis-selling, if any, even if the sales person on whose advice the transaction was executed leaves the employment of the distributor. 3. Investors are requested to use the new application/ transaction forms which have space for sub-broker ARN code and EUIN. It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per the SEBI requirements and any Application Form without these details will be treated as incomplete. Such incomplete applications will be rejected. The Registrar/AMC may ask the investor to provide a blank cancelled cheque or its photocopy for the purpose of verifying the bank account number. Procedure of Registration or Change of Bank Account & Address: Registration of Bank Account A. For existing customers who have not registered their bank account as per records of Taurus Mutual Fund ii) Download Multiple Bank Account Registration Form from and submit the duly filled & signed form at any of Taurus Mutual Fund Official Point of Transactions ii) Support the form with a Cancelled Original Cheque of the new Bank Mandate with First Unit Holder Name and Bank Account Number printed on the face of the Cheque. B. For existing customers Taurus Mutual Fund who have registered their Bank Account and wish to change the bank account i). Submit the Multiple Bank Account Registration Form, duly filled & signed. ii).support the form with a Cancelled Original Cheque of the new Bank Mandate with First Unit Holder Name and Bank Account Number printed on the face of the cheque. 44

45 Bank Mandate Registration As Part Of Fresh Purchase Application/New Folio Creation Registration of Multiple Bank Accounts Restrictions on acceptance of third party instruments Registration of Address A) For KYC Complied Customer i) Proof of new address& PAN Card copy ii) Any other documents that may be specified at the time of Registration of Address B) For Non KYC customer i) Proof of new address ii) Proof of Identity: PAN card copy or any other photo proof of identity All documents need to be self attested. The documents should either be submitted as True Notarised attested copies or accompanied with Original forverification. With effect from November 01, 2013 Investors / Unitholders would be required to submit one of the following documents for the bank mandate specified in the application form, in case the cheque provided along with freshsubscription/ new folio creation does not belong to the bank mandate specified in the application form (for redemption/ dividend payment): 1. Original cancelled cheque having First Holder's Name & Bank Account Number printed on the face ofthe cheque (or) 2. Original Bank Statement reflecting the First Holder's Name, Bank Account Number and Bank Name asspecified in the application (or) 3. Photocopy of the bank statement or bank pass book with current entries not older than 3 months dulyattested by the Bank Manager / Authorized Official (or) 4. Bank letter confirming the Name & Bank Account Number of the First Holder along with the MICR & IFSCdetails (if available) duly signed by the Bank Manager / Authorized Official. An Individual investor may register up to 5 bank accounts while a Non-Individual investor may register up to 10 bank accounts with Taurus Mutual Fund and choose any one of these accounts as the preferred bank account which will be used to make the dividend / redemption proceeds by the Fund. The investor may also choose any one of the remaining bank accounts from the registered list for the said purposes. In case the investor fails to mention any preference, then by default the first number indicated in the list shall be the preferred account number. However the entire proceeds will necessarily be credited to a Single Account and shall not be allocated to multiple bank accounts. For any Change of Bank or Multiple Bank Registration request, the following is mandatory submission ==> ORIGINAL of any one of the following Or originals to be produced for verification Or True attested copy by the bank - i) Cancelled original cheque of the new bank mandate with first unit holder name and bank account number printed on the face of the cheque OR ii) Self attested copy of bank statement OR iii) Bank passbook with current entries not older than 3 months OR iv) Bank Letter duly signed by branch manager / authorized personnel. For bank change/multiple registration in existing folios, where there are no existing bank details, in addition to the above documents an additional requirement is submission of a Photo ID proof of the first holder. All bank change/multiple bank registration requests will take 10 calendar days, from the date of submission of all valid documents, to become effective. TAMCO will not accept any application for subscription to units of schemes of Taurus Mutual Fund where such application is accompanied by Third Party Payment other than the exceptions given in paragraph below. Third-Party Payment means a payment made through instruments issued from a bank account other than that of bank account of first named applicant/investor. In case of payments from a joint bank account, the first named unit holder/investor must be one of the joint holders of bank account from which payment is made. Exception to Third-Party Payments: TAMCO will accept subscriptions to schemes of Taurus Mutual Fund accompanied by Third Party Payment Instruments only in following exceptional cases: a) Payment by Parents/Grand-Parents/Related Persons* on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding ` 50,000/- (each regular purchase or per SIP instalment). However, this restriction will not be applicable for payment made by a Guardian, whose name is registered in the records of 45

46 Taurus Mutual Fund in that folio; b) Payment by an Employer on behalf of employees under Systematic Investment Plans (SIP) or lump sum / one-time subscription, through Payroll deductions or deductions out of expense reimbursements. c) A Custodian on behalf of a Foreign Institutional Investor (FII/FPI) or a client. d) Payment by TAMCO to a Distributor empanelled with it on account of commission/ incentive etc. in the form of the units of schemes of Taurus Mutual Fund through SIP or lump sum / one-time subscription, subject to compliance with SEBI Regulations and Guidelines issued by AMFI from time to time. e) Payment by a Corporate to its Agent / Distributor / Dealer (similar arrangement with Principal-agent relationship), on account of commission / incentive payable for sale of its goods / services, in the form of Mutual Fund units through Systematic Investment Plans or lump sum / one-time subscription, subject to compliance with SEBI Regulations and Guidelines issued by AMFI, from time to time. * Related Person means any person investing on behalf of a minor in consideration of natural love and affection or as a gift. In case of exceptions mentioned above, investors will be required to comply with the following requirements without which application for subscription to units will be rejected: a) Mandatory Know Your Customer ( KYC ) for all investors (guardian in case of minor) and the person making the payment. KYC Acknowledgement Letter for all the investors as well as the person making the payment should be attached to the application form. b) Third Party Declaration from the investors (guardian in case of minor) and the person making the payment (third party) stating details of bank account from which the payment is made and the relationship with the investor(s). In addition, TAMCO reserves the right to ask for cancelled cheque leaf or copy of bank statement / pass book page mentioning bank account number, account holders name and address or such other document as TAMCO may require for verifying the source of funds to ensure that funds have come from the drawer s account only. c) If the subscription is settled with pre-funded instruments such as Pay Order, Demand Draft, Banker s Cheque etc., a Certificate from the issuing banker must accompany the purchase application, stating the Account holder s name and the Account number which has been debited for issue of the instrument. TAMCO shall check that the funds have been debited from a pre-registered pay in account, or from the account of the first named unit holder. d) A pre-funded instrument issued by the Bank against Cash shall not be accepted for investments of Rs 50,000/- or more. e) If payment is made by RTGS, NEFT, ECS, bank transfer etc, a copy of the instruction to the bank stating the account number debited must accompany the purchase application. TAMCO shall check that the account number mentioned on the transfer instruction copy is a registered pay-in account or belonging to the first named unit holder. f) If aggregated payments are received via Channel distributors, TAMCO shall ensure that the settlement model has satisfactory checks and balances against third party payments. g) For payments through net banking and debit cards (as and when made applicable), TAMCO shall endeavour to obtain the details of the bank account debited from the payment gateway service provider and match the same with the registered pay-in accounts. If it is found that the payment is not made from a registered bank account or from an account not belonging to the first named unit holder, TAMCO shall reject the transaction with due intimation to the investor. Currently, where the investor account details are not made available by the payment gateway service provider, TAMCO shall obtain the name of the bank making payment for the subscription. Safe mode of writing cheque As a best practice, to avoid fraud, investors are advised to prepare the payment instrument (i.e. either cheque or demand draft or payorder) favoring the name of the scheme with the first investor'sname, PAN number or Folio number (if any) e.g.: Taurus 46

47 Transferability of Mutual Fund Units in Dematerialized Form Special Products available (Scheme Name) Adarsh Shah (Name of the investor) or Taurus (Scheme Name) AAABS356F or Taurus (Scheme Name) Units issued by Taurus Mutual Fund in the Dematerialized Form can freely be transferred from one Demat Account to another Demat Account effective from 1st October However, restrictions on transfer of units of ELSS schemes during the lock-in period shall continue to be applicable as per the ELSS Guidelines. SYSTEMATIC INVESTMENT PLAN This facility enables investors to save and invest periodically over a longer period of time. It is a convenient way to "invest as you earn" and affords the investor an opportunity to enter the market regularly, thus averaging the acquisition cost of Units. SIP Facility can be availed monthly/quarterly on the following dates: 1 st, 5 th, 10 th, 15 th & 28 th [default date is 10 th of each month/quarter]. Where the SIP end date is not given, the default SIP period will be 1 year. If any SIP date falls on a holiday/non-business day, then the next business day will be taken as the date of the SIP transaction. Eligible schemes are All open-ended Debt & Equity schemes.the minimum initial SIP amount can be Rs 1000/- & in multiple of Re1/- thereafter for monthly SIP and Rs 1500/- & in multiple of Re 1/- thereafter for quarterly SIP. The investor can directly opt for the SIP (without the need for making a minimum lump sum investment of Rs 5000/-) by selecting one of the following two options: (i) Monthly SIP : Monthly SIP instalments of atleast Rs 1000/- each for a minimum period of 6 months aggregating to Rs 6000/- (ii) Quarterly SIP: Quarterly SIP instalments of atleast Rs 1500/- each for a minimum period of 4 quarters aggregating to Rs 6000/- Investors can avail this facility either through ECS (Debit Clearing) of the Reserve Bank of India (RBI) in select cities OR through Auto Debit (standing Instruction)/ NACH via selected banks. Please see the table below SIP via ECS / Auto Debit/ NACH SIP frequency Monthly Quarterly 47 Min. application amt. (Initial or 1 st purchase in a new/existing folio) Rs. 1000/- & in multiple of Re1/- thereafter Rs. 1,500/- & in multiple of Re1/- thereafter Min. number of ECS/Auto Debit/ NACH instructions ** 6 4 Min. value per installment ** Rs1,000/- & in multiple of Re 1/- thereafter Rs1,500/- & in multiple of Re 1/- thereafter Min. aggregate value of all SIP installments Rs 6,000/- Rs 6,000/- For SIP through ECS/ NACH mandate, a cancelled cheque with the first holder s name on the face of the cheque is required to be submitted along with the ECS mandate. All the cheques / payment instructions (including the first cheque/ payment instruction) shall be of equal amounts. After the initial purchase, the first installment date should be at least 30 calendar days after the date of the SIP application submission. If the initial purchase also happens to the be the first SIP installment investment in an existing folio, then the second SIP installment date should be at least 30 calendar days after the date of SIP application submission. Non MICR / Outstation cheques will not be accepted. There is no upper limit for the Purchase for a single cheque/payment instruction or in aggregate. The Auto-Debit facility is presently being offered to investors who provide the bank details as per the following list Bank of Baroda, Bank of India, Punjab National Bank, Kotak Mahindra Bank, Indusind Bank, Citi Bank, HDFC Bank, IDBI Bank, ICICI Bank,

48 Axis Bank, State Bank of India, Union Bank of India & Corporation Bank. Micro SIP is available too and refers to SIPs upto Rs. 50,000/- per year per investor i.e. aggregate of investments in a rolling 12 months period or in a financial year. For Micro SIP, the maximum installment amount can be Rs. 4,000/- per month or Rs. 12,000/- per quarter in addition to the above conditions. A SIP cancellation request should be submitted at least 15 working days prior to the next installment date. On receipt of a valid request, SIP will be terminated and the debit instruction given by the investor under ECS/ Auto Debit/ NACH will be cancelled. The AMC reserves the right to reject any application inter alia in the absence of fulfillment of any regulatory requirements, fulfillment of any requirements as per the instructions in the application form, incomplete/ incorrect documentation and nonsubmission of any necessary information to the satisfaction of the Mutual Fund/AMC. All information herein is subject to change at any time. Investors are requested to read the Scheme Information Document (SID) and the Statement of Additional Information (SAI) for the latest updates. Investors may also visit our website for any latest updates. SYSTEMATIC TRANSFER PLAN Systematic Transfer Plan (STP) is a facility wherein an investor in any open-ended scheme (Transferor or Source scheme) of Taurus Mutual Fund can opt to transfer a fixed amount at regular intervals (as per the table below) to any other open-ended scheme(s) (Transferee or Target scheme) of Taurus Mutual Fund. The first STP transfer date will be atleast 15 days after the date of STP application. The Units will be allotted / redeemed at the Applicable NAV of the respective dates of the Scheme on which such transfers are sought from the Scheme. In case the day on which the transfer is sought is a non- Business Day for the Scheme, then the application for the facility will be deemed to have been received on the immediately following Business Day. An investor may cancel or may change the amount, not below the specified minimum, by giving atleast 15 working days prior written notice. STP may be terminated automatically if the balance falls below the minimum account balance or upon the receipt of notification of death or incapacity of the unitholders by the fund. Rules relating to the plan may be changed from time to time. STP is not available for investments under lock-in period or pledge. In case of insufficient balance, the STP will not be affected. Investors details and mode of holding in the Transferee or Target scheme will be the same as that in the Transferor or Source scheme. Exit load, as applicable, will be levied on the transfer of units from the Source scheme. STP Frequency Minimum STP Min. number of installment amount installments Daily Rs. 500/- 12 Weekly (Friday) Rs. 500/- 12 Monthly ** Rs. 1,000/- 6 Quarterly ** Rs. 1,500/- 4 ** Monthly & Quarterly dates are 1 st, 5 th, 10 th, 15 th and 28 th. The AMC reserves the right to reject any application inter alia in the absence of fulfillment of any regulatory requirements, fulfillment of any requirements as per the instructions in the application form, incomplete/ incorrect documentation and nonsubmission of any necessary information to the satisfaction of the Mutual Fund/AMC. All information herein is subject to change at any time. Investors are requested to read the Scheme Information Document (SID) and the Statement of Additional Information (SAI) for the latest updates. Investors may also visit our website for any latest updates. 48

49 Taurus Opti SIP (Under Systematic Investment Plan) SYSTEMATIC WITHDRAWAL PLAN Systematic Withdrawal Plan is a facility which enables the unitholders to withdraw fixed sums from their unit accounts at periodic intervals. Any unitholder can avail of this facility subject to the terms and conditions contained in the SWP application form. A unitholder can opt for the facility at any time and receive regular monthly / quarterly payments from the account. The first withdrawal date should be alteast 7 business days after the date of SWP application.the valid dates for SWP are 1 st, 5 th, 10 th, 15th and 28 th. The minimum number of SWP installments is 6 and the minimum SWP amount is Rs. 1,000/. The amount withdrawn under SWP by redemption shall be converted into units of the scheme at the applicable NAV and such units will be subtracted from the unit balance of that unitholder. In case the date falls on a holiday or falls during a Book Closure Period, the immediate next Business Day will be considered for this purpose.taurus Mutual Fund may close an investor s account if the balance falls below Rs5000/- or equivalent number of units, due to redemptions or use of SWP. This minimum balance amount needed for SWP may be altered from time to time at the discretion of the AMC. Unitholders may terminate the SWP or change the amount of withdrawal, but not below the specified minimum, by giving 15 days notice to the Fund / R&T Agent. In case of Fixed Withdrawal, if the amount of installment is more than the amount available in that account for redemption, the entire available amount will be redeemed and the SWP will terminate automatically. In such a scenario, AMC will have no obligation to communicate to the investor before automatic termination of SWP. It will also terminate automatically upon the receipt of notification of death or incapacity of the unitholder. SWP is not available for investments under lock-in period and pledge. The investor can opt for direct credit of the redemption proceeds to their bank accounts & Taurus Mutual Fund will endeavor to credit the payout directly to that bank account through available electronic mode(s) (ECS/Direct Credit). The AMC/MF shall not be responsible if payout through electronic mode(s) (ECS/Direct Credit) does not get affected due to incomplete or incorrect information or any other technical/operational reasons. The AMC/MF reserves the right to use any other mode of payment as deemed appropriate. It allows investors a chance to define a minimum and maximum installment amount and based on a simple formula*, a variable monthly installment amount will get calculated. The Taurus OptiSIP installment will be calculated based on the portfolio value on T-5 days before the installment date. Irrespective of the formula* amount, the maximum and minimum investment will be limited by the maximum & minimum installment amounts as chosen by the investor initially. i) Taurus OptiSIP Formula* - A = Fixed Minimum Installment amount B = Fixed Maximum Installment amount C = [(A * Current no. of installment) - Account value of investments via OptiSIP as on 5th day (T-5) before the monthly installment date] ii) Taurus OptiSIP Installment amount = C, provided it is not less than A or more than B, else it will be A or B respectively. The following tabular example will further clarify the above Scenario A (Fixed Minimum Installment Amount) 49 B (Fixed Maximum Installment Amount) C (Opti SIP Formula Value) Opti SIP Installment Amount A = B = C = *The Trustee reserves the right to change the terms and conditions of this facility at a larger date on a prospective basis. The Trustee reserves the right to withdraw the OptiSIP facility. All other terms and conditions of SIP facilities will remain unchanged.

50 Taurus Opti STP (Under Systematic Transfer Plan) This will work on the usual principle of first choosing a Source & a Transfer scheme. It will allow investors a chance to define a minimum and maximum transfer installmentamount and based on a simple formula*, a variable installment amount will get calculated as per the frequency chosen by the investor. The OptiSTP installment will be calculated based on the portfolio value as on the transfer installment date. Irrespective of the formula* amount, the maximum and minimum investment will be limited by the maximum & minimum installment amounts as chosen by the investor initially. ii) Taurus OptiSTP Formula* - A = Fixed Minimum Installment amount B = Fixed Maximum Installment amount C = [(A * Current no. of installment) - Account value of investments via OptiSTP as on the transfer installment date] iii)taurus OptiSTP Installment amount = C, provided it is not less than A or more than B, else it will be A or B respectively. The following tabular example will further clarify the above. Scenario A (Fixed Minimum Installment Amount) B (Fixed Maximum Installment Amount) C (Opti STP Formula Value) Opti STP Installment Amount A = B = C = *The Trustee reserves the right to change the terms and conditions of this facility at a larger date on a prospective basis. The Trustee reserves the right to withdraw the OptiSTP facility. All other terms and conditions of STP facilities will remain unchanged. Who Can Invest Prospective investors are advised to satisfy themselves that they are not prohibited by any law governing them and any Indian law from investing in the Scheme and are authorized to purchase units of mutual funds as per their respective constitutions, charter documents, corporate / other authorizations and relevant statutory provisions. The following is an indicative list of persons who are generally eligible and may apply for subscription to the Units of the Scheme and the indicative list could also include persons not mentioned below: Resident adult individuals either singly or jointly Minor through parent/lawful guardian Companies, Bodies Corporate, Public Sector Undertakings, association of persons or bodies of individuals whether incorporated or not and societies registered under the Societies Registration Act, 1860 (so long as the purchase of units is permitted under the respective constitutions). Trustee(s) of Religious and Charitable and Private Trusts under the provision of Section 11(5) (xii) of the Income Tax Act, 1961 read with Rule 17C of Income Tax Rules, 1962 (subject to receipt of necessary approvals as Public Securities where required) The Trustee of Private Trusts authorised to invest in mutual fund Schemes under their trust deed. Partner(s) of Partnership Firms. Karta of Hindu Undivided Family (HUF). Banks (including Co-operative Banks and Regional Rural Banks), Financial Institutions and Investment Institutions. Non-resident Indians/Persons of Indian origin residing abroad (NRIs) on full repatriation basis or on non-repatriation basis. Foreign Institutional Investors (FIIs) and sub-accounts registered with SEBI on full repatriation basis. Army, Air Force, Navy and other para-military funds. 50

51 Scientific and Industrial Research Organizations. Mutual fund Schemes. Provident/Pension/Gratuity and such other Funds as and when permitted to invest. International Multilateral Agencies approved by the Government of India. Others who are permitted to invest in the Scheme as per their respective constitutions Other Schemes of Taurus Mutual Fund subject to the conditions and limits prescribed in SEBI Regulations and/or by the Trustee, AMC or sponsor may subscribe to the units under this Scheme. The AMC (no fees shall be charged on such investments) Insurance Company registered with the Insurance Regulatory and Development Authority; Qualified Foreign Investors (QFIs) * (subject to compliance with norms specified in SEBI Circular No. CIR/IMD/DF/14/2011 dated August 09, 2011 ) Such other individuals/institutions/body corporate etc., as may be decided by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations. *Qualified Foreign Investor (QFI) shall mean a person resident in a country that is compliant with Financial Action Task Force (FATF) standards and that is a signatory to International Organization of Securities Commission's (IOSCO's) Multilateral Memorandum of Understanding. Such person should not be resident in India and such person should not be registered with SEBI as Foreign Institutional Investor or Subaccount. Explanation- For the purpose of above clause: 1. the term Person shall carry the same meaning as under Section 2(31) of the Income Tax Act, the phrase resident in India shall carry the same meaning as in the Income Tax Act, resident in a country, other than India, shall mean resident as per the direct tax laws of that country. The Fund reserves the right to include/exclude new/existing categories of investors to invest in this Scheme from time to time, subject to regulatory requirements, if any. This is an indicative list and investors are requested to consult their financial advisor to ascertain whether the scheme is suitable to their risk profile. Note: 1. Minor Unit Holder on becoming major may inform the Registrar about attaining majority and provide his specimen signature duly authenticated by his banker as well as his details of bank account and a certified true copy of the PAN card as mentioned under the paragraph Anti Money Laundering and Know Your Customer to enable the Registrar to update their records and allow him to operate the Account in his own right. Note: 2. Applicants under Power of Attorney: An applicant willing to transact through a power of attorney must lodge the photocopy of the Power of Attorney (PoA) attested by a Notary Public or the original PoA (which will be returned after verification) within 5 business days of submitting the Application Form / Transaction Slip at a Designated Collection Centre. Applications are liable to be rejected if the power of attorney is not submitted within the aforesaid period. Subject to the Regulations, any application for Units may be accepted or rejected in the sole and absolute discretion of the Trustee. For example, the Trustee may reject any application for the Purchase of Units if the application is invalid or incomplete or if, in its opinion, increasing the size of any or all of the Scheme's Unit capital is not in the general interest of the Unit Holders, or if the Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its Unit Holders to accept such an application. 51

52 The AMC/ Trustee may need to obtain from the investor verification of identity or such other details relating to a subscription for Units as may be required under any applicable law, which may result in delay in processing the application. It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per SEBI requirements and any Application Form without these details will be treated as incomplete. Such incomplete applications will be rejected. The Registrar / AMC may ask the investor to provide a blank cancelled cheque or its photocopy for the purpose of verifying the bank account number. On account of limitations / restrictions imposed by the jurisdictional laws / regulations with respect to marketing or offering of units of the Schemes of the Fund, the persons stated under the below provision titled 'Who Cannot Invest' shall not be eligible to invest in the Schemes of the Fund. The following persons/ entities cannot invest in the Schemes: United States Person (U.S. Person*) as defined under the extant laws of the United States of America; Residents of Canada; NRIs residing in any Financial Action Task Force (FATF) declared non-compliant country or territory. The term U.S.Person means any person that is a U.S. Person within the meaning of Regulations under the Securities Act of 1933 of U.S. or as defined by theu.s. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislations, rules etc., as may be in force from time to time. Account of Minor, Account Status Change, Minor attaining Majority and Change of Guardian. A] New Account/ Folio is opened on behalf of a Minor The minor shall be the first and the sole holder in an account. No Joint holders are allowed. Guardian in the account / folio on behalf of the minor should be either a natural guardian (i.e. father or mother) or a court appointed legal guardian. Further, the minor's Date of Birth (DOB) too should be mentioned on the application form. Documents supporting the DOB of the minor and also the relationshipof the Guardian & the Minor have to be enclosed. B] Minor attaining Majority - Status change On the Minor becoming a Major, the status of the same needs to be incorporated in the folio. For this, the Investor has to submit KYC acknowledgement,details of bank account wherein the Major has operating powers as well as signature of the Major, suitably attested. The request letter should have thesignature of existing guardian also. In case of non receipt of request for change of status along with relevant documents, minor folio/account will be frozen, for operation by guardian, fromthe date of minor attaining the status of majority as per the records. Nomination Facility C] Change in Guardian In case of a change in guardian, the new guardian must either be a natural guardian (i.e. Father or mother) or a court appointed legal guardian andsuch guardian shall mandatorily submit the supporting documents showing the relationship with the minor, KYC acknowledgement, Bank attestationof signature of the new guardian in a bank account of the minor where the new guardian is registered as the guardian, etc. The AMC provides an option to the Unit holders to nominate (in the manner prescribed under SEBI regulation), a person (s) in whom the units held by him shall vest in the event of his death. Nomination can be made only by individuals on their own behalf, either singly or jointly. If the Units are held jointly, all joint Unitholders must sign the nomination form. Nonindividuals including society, trust, body corporate, partnership firm, Karta of HUF, 52

53 holder of POA cannot nominate. Only the following categories of Indian residents can be nominated: (a) individuals; (b) minors through parent/legal guardian (whose name and address must be provided); (c) religious or charitable trusts; and (d) Central Government, State Government, a local authority or any person designated by virtue of his office. Nomination mandatory where mode of holding is single Transmission of Units Pledge of Units Accounts Statements Nomination can be made for a maximum of 3 nominees. In case of multiple nominees, the percentage of allocation, share in favour of each of the nominees should be indicated against their name and such allocation / share should be in whole numbers without any decimals making a total of 100 percent. In the event of Unitholders not indicating the percentage of allocation / share for each of the nominees, the Mutual Fund/ the AMC, by invoking the default option shall settle the claim equally amongst all the nominees. Nomination is mandatory for all the folios/accounts, where the mode of holding is single or the folio/account is opened by individual without any joint holding. In case investor does not wish to nominate for specific folio/ account, he should fill the specific field by writing "Nomination not required" and sign on the application form. Application forms which have neither a nominee nor the request for "no nomination" will be rejected. Nomination will not be allowed for the folios/accounts opened by minors. Transmission of units is required, on the death of unit holder/s, to their nominees, etc. Transmission could be to surviving unit holders, nominees or to the legal heirs of the unit holder. A request for transmission should be sent separately. If a redemption request accompanies the transmission request, the redemption request will be rejected. Depending upon the facts and circumstances of each case, various information and documents are required to be submitted for transmission of units. Please contact any of the offices of Taurus Asset Management Co. Ltd. or its Registrar & Transfer Agent for further details. The Units under the respective Scheme(s) (subject to completion of lock-in period, if any) may be offered as security by way of a pledge / charge in favour of scheduled banks, financial institutions, non-banking finance companies (NBFCs'), or any other body. The AMC/ R&T will note and record such Pledged Units. The Unitholder may request for the requisite form from the AMC / R&T. The AMC / R&T shall mark a lien only upon receiving the duly completed form and documents as it may require. Disbursement of such loans will be at the entire discretion of the bank/ financial institution/ NBFC or any other body concerned and the Mutual Fund assumes no responsibility thereof. The Pledgor will not be able to redeem Units that are pledged until the entity to which the Units are pledged provides written authorization to the Mutual Fund that the pledge / lien charge may be removed. As long as Units are pledged, the Pledgee will have complete authority to redeem such units. For normal transactions (other than SIP/STP) during ongoing sales and repurchase: The AMC shall issue to the investor whose application (other than SIP/STP) has been accepted, an account statement specifying the number of units allotted within 5 working days from the date of clearance of cheque/draft For those unitholders who have provided an address, the AMC will send the account statement by . The unitholder may request for a physical account statement by ticking the appropriate column in the application form, writing/calling the AMC/ISC/R&T. For SIP / STP transactions; Account Statement for SIP and STP will be dispatched once every quarter ending March, June, September and December within 10 working days of the end of the respective quarter. A soft copy of the Account Statement shall be mailed to the investors under SIP/STP to their address on a monthly basis, if so mandated. However, the first Account Statement under SIP/STP shall be issued within 10 working days of the initial investment/transfer. 53

54 Consolidated Account Statement (CAS) Annual Account Statement: The Mutual Funds shall provide the Account Statement to the Unitholders who have not transacted during the last six months prior to the date of generation of account statements. The Account Statement shall reflect the latest closing balance and value of the Units prior to the date of generation of the account statement. The account statements in such cases may be generated and issued along with the Portfolio Statement or Annual Report of the Scheme. Alternately, soft copy of the account statements shall be mailed to the investors address, instead of physical statement, if so mandated. Common Account Statement for each calendar month would be sent to the investor/s those who have transacted during the month. The investor whose transaction** has been accepted by the AMC/Mutual Fund shall receive the following: (i) On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of and/or SMS within 5 Business Days from the date of receipt of transaction request will be sent to the Unit holders registered address and/or mobile number. (ii) Thereafter, a consolidated account statement (CAS)^ for each calendar month to the Unit holder(s) in whose folio(s) transaction**(s) has/have taken place during the month on or before 10th of the succeeding month shall be sent by mail/ . ^Consolidated Account Statement (CAS) shall contain details relating to all the transactions** carried out by the investor across all schemes of all mutual funds during the month and holding at the end of the month including transaction charges paid to the distributor. **The word 'transaction' shall include purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer plan and bonus transactions. (iii) For the purpose of sending CAS, common investors across mutual funds shall be identified by their Permanent Account Number (PAN). (iv) In case of a specific request received from the Unit holders, the AMC/Fund will provide the account statement to the investors within 5 Business Days from the receipt of such request. (v) In the event the account has more than one registered holder, the first named Unit holder shall receive the CAS/account statement. (vi) The CAS shall not be received by the Unit holders for the folio(s) not updated with PAN details. The Unit holders are therefore requested to ensure that the folio(s) are updated with their PAN. Further, the CAS detailing holding across all schemes of all mutual funds at the end of every six months (i.e. September/ March), shall be sent by mail/ on or before 10th day of succeeding month, to all such Unit holders in whose folios no transaction has taken place during that period. The half yearly consolidated account statement will be sent by to the Unit holders whose address is available, unless a specific request is made to receive in physical. The statement of holding of the beneficiary account holder for units held in demat will be sent by the respective DPs periodically. Investors are requested to note the following (effective from 02/07/2012): (a) The Consolidated Account Statement (CAS) for each calendar month will be issued on or before 10 th day of succeeding month to the investors who have provided valid PAN. Physical account statements will not be sent to the investors after every financial transaction including systematic transaction. Further CAS will be sent via where any of the folios consolidated has an id or to the id of the first unit holder as per KYC records. (b) For folios not included in CAS, the AMC shall henceforth issue Account Statement to the investors on a monthly basis, pursuant to any financial transaction in such folios on or before 10 th day of succeeding month. In case of a New Fund Offer (NFO), the AMC shall send confirmation specifying the number of units allotted to the applicant by way of a physical statement (SOA) or an e- mail/and/or SMS s to the investor s registered address and/or mobile number not 54

55 later than 5 business days from the date of closure of the NFO. (c) In case of a specific request received from the unit holder, the AMC shall provide the account statement to the investor within 5 business days from the receipt of such request Applicable for unit holders having a Demat Account With a view to create one record for all financial assets of every individual, SEBI vide its Circular no. CIR/MRD/DP/31/2014 dated November 12, 2014 enabled a single consolidated view of the investments of an investor in Mutual Funds (MF) and securities held in demat form with the Depositories. In accordance with the above, the following shall be applicable for unit holders having a Demat Account: Investors having Mutual Fund investments and holding securities in demat account shall receive a single Consolidated Account Statement from the Depository. Consolidation of account statement shall be done on the basis of PAN. In case of multiple holding, it shall be the PAN of the first holder and pattern of holding. The CAS shall be generated on a monthly basis. If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, depositories shall send the CAS within ten days from the month end. In case there is no transaction in any of demat accounts or mutual fund folios then CAS with holding details shall be sent to the investor on half yearly basis. The unit holders who do not have Demat Account shall continue to receive the Consolidated Account Statements (CAS) as per the existing practice. Dividend Under the Dividend Plan of the schemes, it is proposed to declare dividends subject to availability of distributable profits, as computed in accordance with SEBI Regulations. Dividends, if declared, will be paid (subject to deduction of tax at source, if any) to those Unitholders whose names appear in the Register of Unitholders on the notified record date. However, it must be distinctly understood that the actual declaration of dividend and the frequency thereof will inter-alia, depend on the availability of distributable profits as computed in accordance with SEBI Regulations. The decision of the Trustee in this regard shall be final. There is no assurance or guarantee to Unitholders as to the rate of dividend distribution nor will that dividends be paid regularly. In order to be a Unitholder, an Investor has to be allotted units against receipt of clear funds by the Scheme. On payment of dividends, the NAV will stand reduced by the amount of dividend and dividend tax (if applicable) paid. If the Fund declares dividend under a Scheme: The dividend warrants shall be dispatched to the Unit holders within 30 days of the date of declaration of the dividend. The dividend proceeds will be paid by way of ECS / EFT / NEFT / RTGS /Direct credits / any other electronic manner if sufficient banking account details of the investor are available with Mutual Fund In case of specific request for dividend by warrants or unavailability of sufficient details with the Mutual Fund, the dividend will be paid by warrant and payments will be made in favour of the Unit holder (registered holder of the Units or, if there are more than one registered holder, only to the first registered holder) with bank account number furnished to the Mutual Fund. Record Date for Dividend Under Dividend plan of w.e.f August 20, 2010, 100% distributable profits computed in accordance with SEBI (Mutual Funds) Regulation, 1996, over and above the base NAV of (face value of Rs 1000 per unit) would be distributed as dividend on Monthly basis to those unitholders whose names stand registered in the Register of unitholders as on the notified record date, which will be the 3 rd Friday of every month or immediately following Business Day, if that day (i.e.3 rd Friday if every month) is not a business day. Reinvestment of Dividend Below the Threshold Amount: If the dividend amount payable to the unit holders under the dividend payout option of 55

56 the aforesaid Schemes/Plans is less than the threshold limit of Rs.250, then such amount will be compulsorily and automatically reinvested in the respective Schemes/Plans,. The dividend distributed (net of tax deducted at source, whenever applicable) for an amount equal to or less than the threshold limit will be reinvested in the Scheme/ Plan by issuing additional Units of the Scheme at the prevailing ex-dividend Net Asset Value o the record date. There shall be no exit load on the dividend so invested. The dividend so reinvested shall constitute a constructive payment of dividend to the Unitholders and a constructive receipt of the same amount from each Unit Holder for reinvestment in Units. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 working days from the date of redemption or repurchase. Payment of Redemption Proceeds i. For Unit holders having a bank account with certain banks with whom the AMC may have an arrangement from time to time: The redemption proceeds shall be directly credited to their account by way of EFT/ NEFT/ RTGS/ Direct credits/ any other electronic manner if sufficient banking account details of the investor are available with Mutual Fund. ii. For any Change of Bank/Multiple Bank Registration request in a folio with or without old bank details, if the new bank is not part of the existing Registered bank list, the updation of new bank details will take 10 calendar days from the date of receipt a valid request. If in this case, a redemption request is made before the up-dation of the new bank details, then the proceeds will be credited into the existing/old bank account. In case there are no existing bank details, then the proceeds will only be credited to the new bank after the records are updated in 10 calendar days, as described above. iii. For other Unit holders not covered by (i) or (ii) above and Unit holders covered by (i) or (ii), but have given specific request for Cheque/Demand Draft: Redemption proceeds will be paid by cheque and payments will be made in favour of the Unit holder with bank account number furnished to the Mutual Fund (please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI). Redemption cheques will be sent to the Unitholder's address. Delay in payment of redemption / repurchase proceeds Restrictions, if any, on the right to freely retain or dispose of units being offered. All Redemption payments will be made in favour of the registered holder of the Units or, if there is more than one registered holder, only to the first registered holder. In the event of delay/ failure to dispatch the redemption/ repurchase proceeds within the aforesaid 10 working days, the Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay 15% per annum). Right to Limit Purchase & Redemptions The Trustee may, in the general interest of the Unit Holders of the Scheme and when considered appropriate to do so based on unforeseen circumstances / unusual market conditions, limit the total number of Units which may be redeemed on any Business Day to 5% of the total number of Units then in issue, under the Scheme and option(s) thereof, or such other percentage as the Trustee may determine. Any Units which consequently are not redeemed on a particular Business Day, will be carried forward for Redemption to the next Business Day, in order of receipt. Redemptions so carried forward will be priced on the basis of the Applicable NAV (subject to the prevailing Load) of the Business Day on which Redemption is made. Under such circumstances, to the extent multiple Redemption requests are received at the same time on a single Business Day, redemptions will be made on a pro-rata basis, based on the size of each Redemption request, the balance amount being carried forward for Redemption to the next Business Day. Pursuant to SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 the redemption/ purchase may be restricted under any Schemes of Taurus Mutual Fund only after the approval of Board of Taurus Asset Management Company Limited (TAMCO) and the Board of Taurus Investment Trust Company Limited (TITCO) when there are circumstances leading to a systemic crisis or event that severely constricts market liquidity or the effective functioning of markets such as: 56

57 Option to hold units in demat form Transaction through electronic mode Trading in units through stock exchange mechanism i. Liquidity issues - when market at large becomes illiquid affecting almost all securities rather than any issuer specific security. ii. Market failures, exchange closures - when markets are affected by unexpected events which impact the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies. iii. Operational issues - when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out). Such cases can only be considered if they are reasonably unpredictable and occur in spite of appropriate diligence of third parties, adequate and effective disaster recovery procedures and systems. Restriction on redemption may be imposed for a specified period of time not exceeding 10 working days in any 90 days period. The following procedure shall be followed when restriction on redemption is imposed: i. No restriction would be imposed on redemption requests upto INR 2 lakhs ii. Where redemption requests are above INR 2 lakhs, TAMCO shall redeem the first INR 2 lakh without such restriction and the remaining part over and above INR 2 lakhs would be subject to the restriction imposed. Investors/Unit Holders are provided with an option to hold their Units in DEMAT form while subscribing to the Units of the above schemes of TMF. Such Unit Holders are required to have a beneficiary account with a Depository Participant (DP) registered with NSDL/CDSL. The DP can process only Redemption request of units held in demat form. In case, the unitholder desires to hold the units in DEMAT or Re-materialized (REMAT) mode at a later date, the request for conversion of units held in non-demat into DEMAT mode or vice-versa should be submitted along with a DEMAT/REMAT Request Form to their DP. During the de-materialisation and re-materialisation process, NO financial and nonfinancial transactionsare allowed. The facility of holding units in de-mat form is available for Systematic Investment Plan (SIP) transactions. Further, units for SIP transactions will be allotted based on the applicable NAV and will be credited to investors de-mat account on a weekly basis after the realisation of funds. The AMC may from time to time offer various facilities to the unit holders through electronic mode such as internet (online transaction facility), mobile phones, Kiosk, etc. to facilitate transactions in units of the scheme. The AMC may enter into such arrangements/ agreements as it may deem fit to give effect to the above. However, investors intending to take benefit of these facilities should note that they should use these services at their own risk. The Fund, the AMC, the Trustee, along with its directors, employees and representatives shall not be liable for any damages or injuries arising out of or in connection with the use of internet, mobile phones, Kiosk, etc or its non-use including, without limitation, non-availability or failure of performance, loss or corruption of data, loss of or damage to property (including profit and goodwill), work stoppage, computer failure or malfunctioning, or interruption of business; error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communication line failure, unauthorized access or use of information. SEBI vide its circular no. CIR/MRD/DSA/32/2013 dated October 04, 2013 had permitted Mutual Fund Distributors to use recognised stock exchanges infrastructure to purchase and redeem mutual fund units directly from Mutual Fund / Asset Management Companies on behalf of their clients. Further SEBI vide its circular no. CIR/MRD/DSA/33/2014 dated December 09, 2014 has permitted non demat transactions also in the Mutual fund through stock exchange platform. Accordingly, it has been decided to make the following changes for Trading in units through stock exchange mechanism: 1. Mutual Fund Distributor (MF distributor) registered with Association of Mutual Funds in India (AMFI) and permitted by the concerned recognized stock exchange shall be eligible to use recognized stock exchanges infrastructure to purchase and 57

58 Transact Online Transactions through website Call Centre Transaction Charge redeem mutual fund units on behalf of their clients directly from Taurus Mutual Fund ( Fund ) 2. The MF distributor shall not handle payout and pay in of funds as well as units on behalf of investor. Pay in will be directly received by recognized clearing corporation and payout will be directly made to investor account. In the same manner, units shall be credited and debited directly from the demat account of investors. 3. Non- demat transactions are also permitted through stock exchange platform. 4. In addition to the existing facility of purchase and redemption of units of the eligible units of the eligible Schemes/Plans of the Fund on Stock Exchange Infrastructure viz. BSE StAR MF Platform, the facility for Switching of units among the eligible Schemes/Plans of the Fund is also being made available to the investors. Investors can give a request for Switch only in number of units. 5. The switch transaction facility will be made available through other Stock Exchange Infrastructure as and when such a facility is made available by the concerned Stock Exchange. 6. The facility of transacting in mutual fund schemes including switch transaction facility through Stock Exchange(s) infrastructure will be in accordance with the procedures and guidelines, terms & conditions as prescribed by the respective Stock Exchange(s) from time to time. For the convenience of investors, the Mutual Fund provides the facility of transacting online through its website Transact Online. A new/first time investor OR an existing investor can use this facility to make an online Purchase or other applicable transactions. To use this facility, a Unit Holder needs to have a secured TPIN. Investors can instantly generate TPIN online or via the Toll Free number Only those investors with a valid folio with mode of holding as Joint will be required to submit a physical TPIN Agreement form by filling up and signing the relevant portions in the TPIN Agreement that can be downloaded from the website of the Mutual Fund By signing & submitting the relevant form, the Unit holder/s expressly agrees to have read and understood the terms and conditions related to PIN issuance by the AMC/ Registrar and PIN usage by the Unit holder.for more details on conditions & process of TPIN issuance, also read the Transact Online FAQs on the website. A Toll Free number facility has been provided for all existing as well as prospective investors & distributors. The number is Overseas investors & others can also reach our customer care on (charges, as applicable). A customer care executive will be available to answer your queries between 9 am - 7 pm from Monday to Saturday (excluding Sundays and all Public holidays). Investors can access NAV, Dividend information, latest statement of account via , portfolio value, last 5 transactions, and status of complaint/request, Generation and modification of a 5-digit TPIN etc. Distributors too can access NAV, Dividend information, latest statement of account of their investors, portfolio value, last 5 transactions, Generation of 5-digit TIN for accessing their investor's investment details, status of complaint/request etc. TAMCO shall deduct a "Transaction charge" (TC) on all Purchases/ SIP amount, received from first time mutual fund investors (New*) and existing mutual fund investors through our empanelled distributor/agent (who has chosen for "Opt-in"), and units will be allotted for the balance amount. The TC will be as follows: Description New Investor Existing Investor Lumpsum investment of Rs and TC = Rs 150 TC = Rs 100 above SIP/ Micro SIP/ Opti SIP Purchase where total commitment (installment amount x No of installment) is Rs & above TC = Rs 150 TC = Rs 100 There shall be no transaction charge on subscription below Rs10,000/-. In case of SIPs, the transaction charge shall be applicable only if the total commitment through SIPs amount to Rs 10,000/- and above. In such cases the transaction charge shall 58

59 be recovered in 3-4 installments. Distributors shall have the option to either opt in or opt out of levying transaction charge based on type of the product. Accordingly, the transaction charges would be deducted from the subscription amounts, as applicable. C. PERIODIC DISCLOSURES Net Asset Value This is the value per unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance. The Mutual Fund shall declare the Net asset value of the scheme on every business day NAV will be displayed on the website of the AMC (www. taurusmutuafund.com). Further it shall endeavour to update the NAV of the Scheme on the website of Association of Mutual Funds in India by 9 p.m. on the same day. The NAV of the Scheme shall be published on a daily basis at least in two daily newspapers. Delay beyond 9 p.m. shall be explained in writing to AMFI and SEBI and shall also be reported in the CTR in terms of number of days of non adherence of time limit for uploading NAV on AMFI's website and the reasons for the same. Corrective steps taken by AMC to reduce the number of occurrences shall also be disclosed. In case the NAVs are not available before the commencement of business hours on the following day due to any reason, AMC shall issue a press release giving reasons for the delay and explain when they would be able to publish the NAVs. Monthly AAUM Monthly Portfolio Disclosures Half -Yearly Portfolio Disclosures This is a list of securities where the corpus of the scheme is currently invested. The market value of these investments is also stated in portfolio disclosures. Half -Yearly Results Annual Report Associate Transactions Monthly Average Assets Under Management (AAUM) of all schemes, as on the last day of the month will be disclosed on the website of the Fund ( on or before 7 working days of the following month. Monthly Portfolio of all schemes, as on the last day of the month will be disclosed on the website of the Fund ( on or before 10 th day of the following month. The Fund will before the expiry of one month from the close of each half-year (i.e., 31 st March and 30 th September), send to all unitholders a complete statement of its scheme portfolio or publish the statement of scheme portfolio by way on advertisement, in one English daily circulating in the whole of India and in a newspaper published in the language of the region where the head office of the mutual fund is situated. The Fund and Asset Management Company shall before the expiry of one month from the close of each half year that is on 31st March and on 30 th Septemberupload the unaudited half yearly financial results on the website of the Fund ( A notice announcing the availability of the same on the website will be published in one national English daily newspaper and in a regional newspaper published in the language of the region where the Head Office of the mutual fund is situated. Scheme wise Annual Report or an abridged summary thereof shall be mailed to all unitholders within four months from the date of closure of the relevant accounting year i...e. 31st March each year. Provided that the Scheme-wise Annual Report or abridged summary thereof may be sent to investors in electronic form on their registered address. The full scheme-wise Annual Reports would also be uploaded on the website: and the AMC shall display the link on the website. Please refer to Statement of Additional Information (SAI). 59

60 Taxation The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorized dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. Particulars Resident Investors Mutual Fund* Tax on Dividend or Dividend Distribution Tax Tax on Dividend or Dividend Distribution Tax Tax on Capital Gains ** Nil Nil Individual & HUF 25% + 12% surcharge +3% Education cess = effective rate is 28.84% Domestic Companies/Firms/BOP/AOI 30% + 12% surcharge + 3% Education cess = effective rate is % Long Term # 20% with Cost Inflation Index N.A benefit Short Term Income Tax rate applicable to the unitholders as per their income slabs N.A *With effect from 1 October 2014, as per Finance (No.2) Act, 2014, DDT would apply on gross dividend instead of net dividend making the actual and effective rate same ** Plus surcharge (where applicable) +education cess of 3% in all cases Surcharge at the rate of 10% is to be levied in case of individual, HUF, AOP, BOI, Artificial juridical person Unitholders where their income exceeds Rs 50 lakhs but not does not exceed Rs 1 crore and at the rate of 15% in cases where their income exceeds Rs 1 crore. Surcharge at the rate of 7% in case of domestic companies unit holders if the income exceeds Rs 1 cr but less than Rs 10 crs and at the rate of 12% if the income exceeds Rs 10 crs. #On or after 11 July 2014, Capital gains arising on transfer or redemption of such units would be regarded as long-term capital gains if such units are held for a period of 36 months or more immediately preceding the date of transfer. Taurus Mutual Fund is a Mutual Fund registered with the Securities & Exchange Board of India and hence the entire income of the Mutual Fund will be exempt from Income Tax in accordance with the provisions of Section 10 (23D) of the Income Tax Act, Note: The tax provisions described above are as per the present tax laws. Incase of any change/variation in the aforesaid tax laws by thegovernment, the changed provisions will apply accordingly. For further details on taxation, please refer to the clauses on Taxation in SAI. Investor services Mr. V.Sasidhar (Head - Customer Services) Taurus Asset Management Company Limited Ground Floor, AML Centre-1, 8 Mahal Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai Phone : Fax : customercare@taurusmutualfund.com Registrar Karvy Computershare Private Ltd. Unit: Taurus Mutual Fund 1st Floor, Karvy Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad Phone: Ext:

61 For any grievances with respect to transactions through stock exchangemechanism, Unit Holders must approach either their stock broker or the investor grievance cell of the respective stock exchange. D. COMPUTATION OF NAV The Net Asset Value per unit shall be calculated by dividing the Net Assets of the Scheme by the total number of units outstanding under the scheme on the valuation date. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VII of the SEBI Regulations or such norms as may be specified by SEBI from time to time. NAV of the units of the scheme shall be calculated as shown below: NAV Rs. Per unit = Market or Fair value of Scheme s investments + Current Assets-Current Liabilities and Provisions / No. of units outstanding under the scheme In respect of, Net Asset Value will be rounded off upto four decimal points. The NAV will be calculated on all Business Days and will be published daily in at least two daily newspapers or at such intervals as may be prescribed by SEBI from time to time IV. FEES AND EXPENSES This section outlines the expenses that will be charged to the schemes. A. NEW FUND OFFER (NFO) EXPENSES All the schemes included in this Common Scheme Information Document are ongoing schemes and as such this section is not applicable. B. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents fee, marketing and selling costs, listing fees etc.the AMC has estimated that the following percentage p.a. of the daily net assets of the Scheme will be charged to the Scheme as expenses. Expense Head Investment Management and Advisory Fees Trustee Fee Audit Fees Custodian Fees RTA Fees Marketing & Selling Expense incl Agent Commission Cost related to Investor communication Cost of fund transfer from location to location Cost of providing account statements and dividend redemption cheques & warrants Cost of statutory advertisements Cost towards investor education and awareness (at least 2bps) Brokerage & Transaction cost over and above 12bps and 5bps for cash and derivative market trades resp Service tax on expenses other than investment and advisory fees Service tax on brokerage and transaction cost Other expenses Maximum Total Expense Ratio (TER) permissible under Regulation 52 (6) (c) (i) and (6) (a) Estimated Expense % p.a. of Daily Net Assets Upto 2.25% Upto 2.25% 61

62 Additional expenses under Regulation 52 (6A) (c) Upto 0.20% Additional expenses for Gross new inflows from specified cities Upto 0.30% At least 5% of the Total Expense Ratio (TER) will be charged towards distribution expenses/ commission in the Regular (Existing) Plan (Non Direct Plan). The TER of the Direct Plan will be lower to the extent of the above mentioned distribution expenses / commission (at least 5% of TER) which is charged in the Regular (Existing) Plan (Non Direct Plan). For example, in the event that TER of the Regular (Existing) Plan (Non Direct Plan) is 1% p.a., the TER of the Direct Plan would not exceed 0.95% The recurring expenses of the Scheme (including investment and advisory fees) will be subject to the following maximum limits (as a percentage p.a. of daily Net Assets) as per Regulation 52(6). Expenses over and above the permitted limit under the applicable Regulations will be borne by the AMC. Daily Net Assets (Rs.) Additional Expenses under Regulation 52 (6A) (c) * Additional Expenses for Gross new inflows from specified cities ** First 100 crores 2.25% Upto 0.20% Upto 0.30% Next 300 crores 2.00% Upto 0.20% Upto 0.30% Next 300 crores 1.75% Upto 0.20% Upto 0.30% Balance Assets 1.50% Upto 0.20% Upto 0.30% In addition to the limits specified, the following cost or expenses may be charged to the scheme: * (a) Additional expenses, incurred towards different heads mentioned under sub-regulations (2) and (4) of regulation 52, not exceeding 0.20 per cent of daily net assets of the scheme **(b) Expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such cities as specified by SEBI from time to time are atleast (i) 30 per cent of gross new inflows in the scheme, or (ii) 15 per cent of the average assets under management (year to date) of the scheme, whichever is higher: Provided that if inflows from such cities is less than the higher of sub clause (i) or sub-clause (ii), such expenses on daily net assets of the scheme shall be charged on proportionate basis: Provided further that expenses charged under this clause shall be utilized for distribution expenses incurred for bringing inflows from such cities Provided further that amount is incurred as expense on account on inflows from such cities shall be credited back to the scheme in case the said inflows are redeemed within a period of one year from the date of investment. (c) Service Tax on investment and advisory fees charged on the daily net assets of the schemes. (d) Brokerage and Transaction costs incurred for purpose of execution of trade and included in the cost of investment not exceeding 0.12 per cent in case of cash market transaction. Service tax on other than investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of TER as per the regulation 52 of the Regulations. AMC shall annually set apart at least 2 basis points on daily net assets within the maximum limit of expenses for investor education and awareness initiatives. Under Regulation 52, AMC reserves the right to charge Investment Management and Advisory fees (IMA Fees) and other expenses at its discretion subject to the maximum limit of total expense ratio prescribed under SEBI (Mutual Fund) Regulations, The IMA Fees charged by the AMC to the respective scheme(s) will be within the total expenses limit as prescribed by Regulation 52(6) and 52(6A) of SEBI (Mutual Funds) Regulations, 1996 with no sub-limit on said IMA Fees. 62

63 Illustration of Impact of expense ratio on scheme's returns To see how expense ratios can affect the investments over time, let s compare the returns of several hypothetical investments that differ only in expense ratio. The following table depicts the returns on Rs10, 000 initial investment, assuming an average annualized gain of 10%, with different expense ratios (0.50%, 1%, 1.50%, 2% and 2.50%): Expenses Ratio Year 10% Gain (Rs) 0.50% 1.00% 1.50% 2.00% 2.50% Less Received Less (Percentage) If an investor had invested Rs10,000 in the scheme with a 2.50% expense ratio, the value of the investment would be Rs after 5 years. Whereas, if the investor had invested Rs 10,000 in a scheme with 0.50% expense ratio, the investment would be worth Rs after 5 years. C. LOAD STRUCTURE Load is an amount which is paid by the investor to subscribe to the units or to redeem from the scheme. Load amounts are variable and are subject to change from time to time. Investment Amount Entry Load Exit Load Any amount (Including SIP Application) Nil 0.25% if exited on or before 30 days, Nil if exited after 30 days Switch: Switch to any other scheme (Debt/Equity) Exit Load as per the table i) A Switch-Out/ Withdrawal under SWP will also attract an exit load like any redemption. ii) In case of SIP/ STP, the above criteria for Exit Load will be applicable for each installment. iii) Exit load is applicable for all the Plans/Options under the Scheme by applying First in First Out basis iv) No Exit Load is chargeable in case of switches made between different Sub-options of the same plan. In terms of SEBI Circular No SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009, no entry load will be charged with respect to applications for purchase / additional purchase / switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans (SIP) / systematic transfer plans (STP) accepted by the Fund. The upfront commission on investment made by the investor, if any shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including service rendered by the ARN Holder. In terms of SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012 with effect from October 01, 2012 Exit Load, if any charged to the investor will be credited to the Scheme, net of Service Tax. In accordance with SEBI Circular No SEBI/IMD/CIR No.6/172445/2009 dated August 7, 2009 to bring about parity among all class of unit holders, no distinction among unit holders would be made based on the amount of subscription while charging exit loads. 63

64 Further in terms of SEBI Circular No. SEBI/IMD/CIR No.7/173650/2009 dated August 17, 2009, it shall be ensured that (a) The principle laid down in the SEBI Circular No. SEBI/IMD/CIR No.5/126096/08 dated May 23, 2008 (clause 16 of the standard observation) that any imposition or enhancement in the load shall be applicable on prospective investments only shall be followed. (b) The parity among all classes of unit holders in terms of charging exit load shall be made applicable at the portfolio level. As per SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008, no entry or exit load would be charged on Bonus units and on units allotted on reinvestment of Dividend. The investor is requested to check the prevailing load structure of the scheme before investing. For any change in load structure AMC will issue an addendum and display it on the website/investor Service Centres. Repurchase Price The Mutual Fund shall ensure that the repurchase price shall not be lower than 93% of the NAV and the sale price shall not be higher than 107% of the NAV and the difference between the repurchase price and sale price of the units shall not exceed 7% calculated on the sale price as provided under SEBI (MF) Regulations. The Trustee reserves the right to modify/alter the load structure with prospective effect, subject to the maximum limits as prescribed under the SEBI Regulations. In case of an exit load it may be linked to the period of holding. At the time of changing the load structure, the AMC shall take the following steps: Any imposition or enhancement in the load shall be applicable on prospective investments only. However, AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors. At the time of changing the load structure, the mutual funds may consider the following measures to avoid complaints from investors about investment in the schemes without knowing the loads: The addendum detailing the changes shall be attached to Scheme Information Documents and Key Information Memoranda. The addendum will be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock. Arrangements shall be made to display the changes/modifications in the Scheme Information Document in the form of a notice in all the ISCs or the AMC. The introduction of the exit load/ CDSC along with the details shall be stamped in the acknowledgement slip issued to the investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such load/cdsc. Also be disclosed in the statement of accounts issued after the introduction of such load/cdsc. A public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the Mutual Fund is situated. Any other measure which the Fund may feel necessary. The investor is requested to check the prevailing load structure of the Scheme before investing. D. WAIVER OF LOAD FOR DIRECT APPLICATIONS: Pursuant to SEBI Circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load shall be charged for all mutual fund schemes. Therefore, the procedure for waiver of load for direct applications is no longer applicable. 64

65 Disclosure of Aggregate Investments in the schemes of Taurus Mutual Fund (as on March 31, 2017) i. AMC s Board of Directors Name of Schemes Taurus Starshare Taurus Bonanza Fund Taurus Discovery Fund Taurus Ethical Fund Taurus Infrastructure Fund Taurus Banking & Financial Services Fund Taurus Nifty Index Fund Taurus Taxshield Fund Taurus Ultra Short Term Bond Fund Taurus Dynamic Income Fund Taurus Liquid Fund Amount Invested (Rs) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil ii. Scheme s Fund Managers NIL iii. Other Key Managerial Personnel of AMC NIL V. RIGHTS OF UNITHOLDERS Please refer to SAI for details. 65

66 VI. PENALTIES, PENDING LITIGATIONS OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY 1) All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall be disclosed. - Not Applicable 2) In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed. - None 3) Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. - None 4) Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately. Taurus Investment Trust Company Limited (TITCO) filed litigation at Ahmedabad High Court for recovery of principal amount of Rs.8 crores against M/s. Rinki Petrochemicals & Motorol India Limited, Baroda and its promoters. Accordingly, the Official Liquidator was appointed by the Ahmedabad High Court for sale of Company s property for recovery and to make payment to various creditors including TITCO. At present, Fund has already received major amount, partly from the OL and partly from the promoters of Rinki Petrochemicals & Motorol India Limited. The balance amount of Rs.5.16 lacs is to be recovered from the OL for which matter is being regularly followed up. Taurus Investment Trust Company Limited (TITCO) has filed case u/s 138 of Negotiable Instrument Act on April 14, 2017 to recover dues from Ballarpur Industries Ltd. (BILT) who had not honoured its commitment on the maturities of the Commercial Paper (CP) issued by them to the four Income Schemes of Taurus Mutual Fund (TMF) amounting to Rs.107Crs. Taurus Investment Trust Company Limited (TITCO) also filed case in NCLT, New Delhi under section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s. Avantha Holdings Limited which holds 49% stake in Ballarpur Industries Ltd. (BILT) and had issued an unconditional and irrevocable Corporate Guarantee in favour of Taurus Mutual Fund in reference to Commercial Paper issued by Ballarpur Industries Ltd. (BILT). 5) Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency, shall be disclosed. - No such case exists Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the Guidelines there under shall be applicable. For and on behalf of Board of Directors of Taurus Asset Management Company Limited Place: Mumbai Date: June 30, Waqar Naqvi Chief Executive Officer

67 OFFICIAL POINTS OF TRANSACTIONS OFFICES OF TAURUS ASSET MANAGEMENT CO. LTD CHENNAI: Shop No.1H, First Floor, east Coast Chambers, 92, G.N. Chetty Road, T Nagar, Chennai , Tel: DELHI: Upper ground floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi Tel: / KOLKATA: Landmark Building, 9C, 9th Floor, 228A, A.J.C. Bose Road, Kolkata Tel: / 2 MUMBAI: AML Center 1, Gr. floor, Mahakali Caves Road, Andheri (E),Mumbai Tel: PUNE: Shrinath Plaza, Office No 90, 4th Floor, DnyaneshwarPadukaChowk, FC Road, Shivajinagar, Pune Pune Tel: /13 customercare@taurusmutualfund.com Website: Toll Free No INVESTOR SERVICE CENTRES OF Register & Transfer Agent Karvy Computershare Pvt. Ltd Agra: Karvy Computershare Private Limited, 1st Floor, Deepak Wasan Plaza, Opp Meghdoot Furniture, Sanjay place Agra Ahmedabad: Karvy Computershare Private Limited, , Shail Building,2nd Floor, Opp Madhusudhan House, Nr. Navrangpura Telephone Exchange, Navrangpura, Ahmedabad Ajmer: Karvy Computershare Pvt. Ltd. 302, 3rd Floor, Ajmer Auto Building, Opposite City Power House, Jaipur Road Ajmer , Tel. : Akola: Karvy Computershare Private Limited Shop No-30, Ground Floor, Yamuna Tarang Complex, shop No 30, N.H. No.- 06, Murtizapur Road, Akola Tel: Allahabad: Karvy Computershare Private Limited, RSA Towers, 2nd Floor, Above Sony TV Showroom,57, S P Marg, Civil Lines, Allahabad Ambala: Karvy Computershare Private Limited, 6349, Nicholson Road, Adjacent Kos Hospital, Ambala Cantt, Ambala Amravati: Karvy Computershare Private Limited, Shop No. 21, Gulshan Tower, Near Panchsheel Talkies, Jaistambh Square, Amaravthi Tel: Amritsar: Karvy Computershare Private Limited, 72-A, Taylor's Road, Aga Heritage Gandhi Ground, Amritsar Anand: Karvy Computershare Private Limited, B-42 Vaibhav Commercial Center Nr Tvs Down Town Show Room Grid Char Rasta Anand -38. Asansol: Karvy Computershare Private Limited,114/71 G T Road Near Sony Center,Bhanga Pachil Asansol Aurangabad: Karvy Computershare Private Limited, Ramkunj Niwas Railway Station Road Near Osmanpur Circle Aurangabad , Bangalore: Karvy Computershare Private Limited, No :59,Skanda Puttanna Road Basavanagudi Bangalore Bareilly: Karvy Computershare Private Limited, 1st Floor, 165, Civil Lines, Opp. Hotel Bareilly Palace, Near Rly Station Road, Bareilly , Gujarat, Baroda: Karvy Computershare Private Limited, 203, Corner Point, Jetalpur Road, Baroda Belgaum: Karvy Computershare Private Limited CTS No 3939/A2 A1 Above Raymond Show Room beside Harsha Appliances, Club Road, Belgaum Bellary: Karvy Computershare Private Limited, No.1 Khb Colony, Gandhinagar, Bellary Tel: Bharuch: Karvy Computershare Private Limited, Shop No Aditya complex, Near Kasak Circle, Bharuch Bhavnagar: Karvy Computershare Private Limited, G-11 Giranjali Complex Beside Bhavnagar Municipal Corporation & Collector Office, Kalanala Bhavnagar Bhilai: Karvy Computershare Private Shop No 1 First Floor Plot No.1 Commercial Complex Nehru Nagar - East Bhillai , Bhopal: Karvy Computershare Private Limited, Kay Kay Business Centre,133 Zone I M P Nagar, Bhopal , Bhubaneswar: Karvy Computershare Private Limited, -A/181 Back side Of shivam Honda Show Room Saheed Nagar Bhubaneshwar , Bokaro: Karvy Computershare Private Limited, B-1, 1st Floor, Near Sona Chandi Jewellers, City Centre, Sector - 4, Bokaro Steel City ( Jharkhand) Tel: /32/30 Calicut: Karvy Computershare Private Limited, IInd Floor, Sowbhagya Shoping Complex, Mavoor Road, Calicut ,Chandigarh: Karvy Computershare Private Limited, Sco , Sector 22 - C,Chandigarh , Chennai (Egmore): Karvy Computershare Private Limited, Flat No F11, First Floor, Akshya Plaza (Erstwhile Harris Road), Opp. Chief City Metropolitan Court,# 108,Adhithanar Salai, Egmore, Chennai Chennai (TNagar): No. 22, G 1 Swathi Court, Vijayaraghava Road, T Nagar, Chennai , Telephone: Cochin: Karvy Computershare Private Limited, Building Nos.39, Ali Arcade,1st floor, Near Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin , Tel: Coimbatore: Karvy Computershare Private Limited, 1057/1058, Jaya Enclave, Avanashi Road, Coimbatore , Tel: , Cuttack: Karvy Computershare Private Limited, PO Buxi Opp. Dargha Bazar Police Station, Buxibazar, Cuttack , Dehradun: Karvy Computershare Private Limited, Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun , Dhanbad: Karvy Computershare Private Limited, 208, New Market, 2Nd Floor, Katras Road, Bank More, Dhanbad , Durgapur: Karvy Computershare Private Limited, MWAV- 16 Bengal Ambuja, 2nd Floor City Centre, 16 DT Burdwan Durgapur , Faridabad: Karvy Computershare Pvt. Ltd. A-2B, 1st Floor, Nehru Ground, Neelam Bata Road, Nit, Faridabad Ghaziabad: Karvy Computershare Private Limited, 1st Floor, C-7, Lohia Nagar, Ghaziabad , Gorakpur: Karvy Computershare Private Limited, Above V.I.P. House, Adjacent A.D. Girls Inter College, Bank Road, Gorakpur Gurgaon: Karvy Computershare Private Limited, Shop No. 18, Ground Floor, Sector - 14, Opp. AKD Tower, Near Huda Office, Gurgaon ,Guwahati: Karvy Computershare Private Limited, 1st Floor, Bajrangbali Building, Near Bora Service Station, GS Road, Guwahati Tel. : , Gwalior: Karvy Computershare Private Limited, 2nd Floor, Rajeev Plaza, Jayendra Ganj, Lashkar, Gwalior Tel: Hissar: Karvy Computershare Pvt. Ltd. SCO 71, 1st Floor, Red Square Market, Hissar Hubli: Karvy Computershare Private Limited, 22nd & 23rd, 3rd Floor, Eureka Junction, Travellers Bunglow, Hubli Tel: ,Hyderabad: Karvy Computershare Private Limited, Karvy Centre, / K, Avenue 4, Street No.1, Banjara Hills Hyderabad Tel: / Hyderabad (Telangana): Karvy Selenium. Plot No. 31 & 32, Tower B, survey No. 115/22,115/24 & 115/25, Financial District, Gachibowli, Nanakramguda, Serilingampally Mandal, Hyderabad , Ranga Reddy District, Telangana, Tel: /22/23. Indore:Karvy Computershare Pvt. Ltd. 2nd floor, Balaji Corporates, Above ICICI bank, 19/1 New Palasia, NearCurewell Hospital, Janjeerwala Square, Indore Tel: , Jabalpur: Karvy Computershare Private Limited,Grover Chamber, 43 Naya Bazar Malviya Chowk, Opp Shyam Market, Jabalpur (M.P.) Tel: Jaipur: Karvy Computershare Private Limited, S-16 A, 3rd Floor, Land Mark, Opposite Jaipur Club, Mahavir Marg, C- Scheme, Jaipur , Jalandhar: Karvy Computershare Private Limited, 1st Floor, Shanti Towers, Sco No. 37, Puda Complex, Opposite Tehsil Complex, Jalandhar Tel: , Jamshedpur: Karvy Computershare Private Limited, 2nd Floor, R R Square, SB Shop Area, Near Reliance Foot Print & Hotel- Bs Park Plaza, Main Road, Bistupur, Jamshedpur Tel: Jammu: : Karvy Computershare Pvt. Ltd. Gupta s Tower, 2 nd Floor, CB- 12, Rail Head Complex, Jammu , Jaunpur: Karvy Computershare Private Limited, R N Complex, G (In Front of Pathak Honda), Ummarpur, Jaunpur , Jodhpur: Karvy Computershare Private Limited, 203, Modi Arcade, Chupasni Road, Jodhpur , Kanpur: Karvy Computershare Private Limited,15/46, Opp Muir Mills, Civil Lines, Kanpur , Karnal: Karvy Computershare Private Limited 18/369, Char Chaman Kunjpura Road Behind Miglani Hospital Karnal Tel : Kolhapur: Karvy Computershare Private Limited, 605/1/4 E ward, Shahupari,2nd Lane Laxmi Niwas Near Sultan chambers Kolhapur Kolkata: Karvy Computershare Private Limited, Apeejay House (Beside Park Hotel), 15 Park Street, C Block, 3 rd Floor, Kolkata , Tel: , Kota: Karvy Computershare Private Limited H.No. 29, First Floor, Near Lala Lajpat Rai Circle Shopping Centre, Kota, Rajasthan Tel: Kottayam: Karvy Computershare Private Limited, 67

68 1stFloor Csiascens square Railway station Collectorate Kottayam ,Lucknow: Karvy Computershare Private Limited, 1st Floor, A A Complex, Thaper House, 5 Park Road, Hazratganj, Lucknow Tel: , Ludhiana: Karvy Computershare Private Limited,Sco-136, Bawa Building, Feroze Gandhi Market, Ludhiana , Madurai: Karvy Computershare Private Limited, Rakesh Towers, 30-C, Bye Pass Road, 1st Floor, Opp Nagappa Motors, Madurai Mallapuram: First Floor Cholakkal Building, Near A U P School, Up Hill, Malappuram Kerala Tel: Mangalore: Karvy Computershare Private Limited, Mahendra Arcade Opp Court Road Karangal Padi Mangalore , Margao: Karvy Computershare Private Limited, 2nd Floor, Dalal Commercial Complex, Opp Hari Mandir, Pajifond, Margao - Goa , Mathura: Karvy Computershare Private Limited, Ambey Crown, IInd Floor, In Front of BSA College, Gaushala Road, Mathura , Tel: , Meerut: Karvy Computershare Private Limited, 1st Floor, Medi Centre Complex, Opp. ICICI Bank, Hapur Road, Meerut Mehsana: Ul - 47, Appolo Enclave, Opp Simandhar Temple, Modhera Char Rasta, Highway, Mehsana Tel: Moradabad: Karvy Computershare Private Limited, Om Arcade, Parker Road, Above Syndicate Bank, Tari Khana Chowk, Moradabad , Mumbai: Karvy Computershare Private Limited, Office No.: 01/04, 24/B, Raja Bahadur Compound, Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort, Mumbai Tel: , Muzaffarpur: Karvy Computershare Private Limited, First Floor, Shukla Complex, Near ICICI Bank, Civil Court Branch, Company Bagh, Muzaffarpur , Mysore: Karvy Computershare Private Limited, L - 350, Silver Tower, Clock Tower, Ashoka Road, Mysore , Nagpur: Karvy Computershare Private Limited, Plot No.2/1, House No. 102/1, Mangaldeep Apartment, Mata Mandir Road, Opp. Khandelwal Jewellers, Dharampeth, Nagpur , Tel: / , Nasik: Karvy Computershare Private Limited, S-12, Second Floor, Suyojit Sankul, Sharanpur Road, Nasik , Navsari: 1st Floor, Chinmay Arcade, Opp. Sattapir, Tower Road, Navsari Tel: New Delhi: Karvy Computershare Private Limited, -305 New Delhi House 27 Barakhamba Road,New Delhi Noida: Karvy Computershare Private Limited, 405,4th Floor, Vishal Chamber, Plot No. 1,Sector-18, Noida (U.P.) Tel: , Palghat: Karvy Computershare Private Limited 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat Tel: Panaji (Panjim):Karvy Computershare Private Limited, Flat No. 1-A, H. No. 13/70, Timotio Bldg, Heliodoro Salgado Road, Next to Navhind Bhavan (Market Area), Panaji, Goa Tel No: /74. Panipat: JAVA Complex, 1st Floor, Above Vijaya Bank, G T Road, Panipat , Tel: Patiala: Karvy Computershare Private Limited, Sco 27 D, Chhoti Baradari, Patiala , Patna: Karvy Computershare Private Limited,3A 3rd Floor Anand Tower Exhibition Road Opp ICICI Bank Patna Pondicherry: Karvy Computershare Private Limited, First Floor, No.7, Thiayagaraja Street, Pondicherry , Pune: Karvy Computershare Private Limited, Mozaic Bldg, CTS No.1216/1, Final Plot No.576/1 TP, Scheme No.1, F C Road, Bhamburda, Shivaji Nagar, Pune Tel: / Raipur: Karvy Computershare Private Limited, Shop No.31 Third Floor, Millennium Plaza Above Indian House, Behind Indian Coffee House, Road, Raipur , Rajkot: Karvy Computershare Private Limited,104, Siddhi Vinayak Complex, Dr Yagnik Road, Opp Ramkrishna Ashram, Rajkot , Ranchi: Karvy Computershare Private Limited, Commerce Towers, 3Rd Floor, Room No. 307,Beside Mahabir Towers, Main Road, Ranchi , Renukeet: Karvy Computershare Private Limited, Shop No. 18, Near Complex, Birla Market, Renukeet Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak , Tel: Rourkela: Karvy Computershare Private Limited,1st Floor, Sandhu Complex, Kanchery Road, Udit Nagar, Rourkela , Salem: Karvy Computershare Private Limited, NO 3/250 "F" Brindvan Road 6th Cross, Perumal kovil backside Fairland's, Salem Shimla: Karvy Computershare Private Limited, Triveni Building By Pas Chowk, Khallini, Shimla , Tel: Siliguri: Karvy Computershare Private Limited, Nanak Complex, Near Church Road,Sevoke Road, Siliguri , Surat: Karvy Computershare Private Limited, G-5 Empire State Building, Nr Udhna Darwaja, Ring Road, Surat , Tirupati: Karvy Computershare Private Limited, H.No: , 1st Floor, Tilak Road, Opp: Sridevi Complex, Tirupati Tel: Trichur: Karvy Computershare Private Limited, 2nd Floor, Brother's Complex, Near Dhana Laxmi Bank Head Office, Naikkanal Junction, Trichur , Trichy: Karvy Computershare Private Limited,60 Srikrishna Arcade, 1st Floor, Thennur High Road, Trichy , Trivandrum: Karvy Computershare Private Limited, 2nd Floor, Akshaya Towers, Sasthamangalam, Trivandrum , Udaipur: Karvy Computershare Private Limited, , Madhav Chambers, Opp. G.P.O, Chetak Circle, Madhuban, Udaipur , Valsad: Shop No 2, Phiroza Corner, Opp Next Showroom, Tithal Road Valsad Tel: Vapi: Karvy Computershare Private Limited Shop No-12 Ground Floor Sheetal Apartment Near K P Tower Vapi Varanasi: Karvy Computershare Private Limited, D-64/132,KA 1st Floor, Anant Complex, Sigra, Varanasi , Vellore: Karvy Computershare Private Limited,No.1, M.N.R. Arcade, Officer's Line, Krishna Nagar, Vellore , Vijayawada: Karvy Computershare Private Limited, Opp Municipal Water Tank, Labbipet, Vijayawada , Visakhapatnam: Karvy Computershare Private Limited, /1 Eswar Paradise, Dwaraka Nagar, Main Road, Visakhapatnam Yamuna Nagar: Jagdhari Road, Above UCO Bank, Near D.A.V. Girls College, Yamuna Nagar Tel: Mutual Fund Investments are subject to market risks, read all Scheme related Documents carefully. 68